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 supplies is closest to:
A)$2,757 U
B)$2,757 F
C)$2,073 U
D)$684 U

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 supplies is closest to:
A)$2,757 U 
B)$2,757 F 
C)$2,073 U 
D)$684 U

Quizplus · Accepted Answer

Variable overhead rate variance = (AH F1F1F1S1F1F1F10 AR)- (AH F1F1F1S1F1F1F10 SR)
= $75,465 - (61,160 hours F1F1F1S1F1F1F10 $1.20 per hour)
= $75,465 - $73,392 = $2,073 U

The Following Data Have Been Provided by Pollo Corporation