The following data have been provided by Augustave Corporation: Indirect labor and power are both elements of variable manufacturing overhead.
-The variable overhead rate variance for indirect labor is closest to:
A)$7,407 F
B)$4,347 F
C)$4,347 U
D)$3,060 F

Question

The following data have been provided by Augustave Corporation:   Indirect labor and power are both elements of variable manufacturing overhead.
-The variable overhead rate variance for indirect labor is closest to:
A)$7,407 F 
B)$4,347 F 
C)$4,347 U 
D)$3,060 F

Quizplus · Accepted Answer

Variable overhead rate variance = (AH F1F1F1S1F1F1F10 AR)- (AH F1F1F1S1F1F1F10 SR)
= $194,418 - (44,170 hours F1F1F1S1F1F1F10 $4.50 per hour)
= $194,418 - $198,765 = $4,347 F

The Following Data Have Been Provided by Augustave Corporation