The following data have been provided by Pollo Corporation: Lubricants and supplies are both elements of variable manufacturing overhead.
-The variable overhead rate variance for lubricants is closest to:
A)$1,425 U
B)$13,448 U
C)$12,023 U
D)$12,023 F

Question

The following data have been provided by Pollo Corporation:   Lubricants and supplies are both elements of variable manufacturing overhead.
-The variable overhead rate variance for lubricants is closest to:
A)$1,425 U 
B)$13,448 U 
C)$12,023 U 
D)$12,023 F

Quizplus · Accepted Answer

Variable overhead rate variance = (AH F1F1F1S1F1F1F10 AR)- (AH F1F1F1S1F1F1F10 SR)
= $164,923 - (61,160 hours F1F1F1S1F1F1F10 $2.50 per hour)
= $164,923 - $152,900 = $12,023 U

The Following Data Have Been Provided by Pollo Corporation