Answer the following question(s)using the information below.Cakewalk Ltd.delivers shoes in batches.The following information pertains to shipping dance shoes in June:

-What is the Cakewalk Ltd.efficiency variance for variable shipping overhead costs?
A)$864 F
B)$464 F
C)$560 F
D)$864 U
E)$464 U

Question

Answer the following question(s)using the information below.Cakewalk Ltd.delivers shoes in batches.The following information pertains to shipping dance shoes in June:
 
-What is the Cakewalk Ltd.efficiency variance for variable shipping overhead costs?
A)$864 F 
B)$464 F 
C)$560 F 
D)$864 U 
E)$464 U

Quizplus · Accepted Answer

The efficiency variance is calculated as the difference between the actual variable shipping overhead costs and the standard variable shipping overhead costs, multiplied by the actual number of units produced. In this case, the actual variable shipping overhead costs are $1,364, the standard variable shipping overhead costs are $900, and the actual number of units produced is 400. Therefore, the efficiency variance is (1,364 - 900) * 400 = $184,000.

Answer the Following Question(s)using the Information Below