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 power is closest to:
A)$1,428 F
B)$5,016 F
C)$5,016 U
D)$3,588 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 power is closest to:
A)$1,428 F 
B)$5,016 F 
C)$5,016 U 
D)$3,588 F

Quizplus · Accepted Answer

Variable overhead rate variance = (AH F1F1F1S1F1F1F10 AR)- (AH F1F1F1S1F1F1F10 SR)
= $89,169 - (44,170 hours F1F1F1S1F1F1F10 $2.10 per hour)
= $89,169 - $92,757 = $3,588 F

The Following Data Have Been Provided by Augustave Corporation