Hickory Corporation, which produces commercial safes, has provided the following data: Supplies cost is an element of variable manufacturing overhead.
-The variable overhead rate variance for supplies is closest to:
A)$47,251 F
B)$42,901 U
C)$47,251 U
D)$42,901 F

Question

Hickory Corporation, which produces commercial safes, has provided the following data:  Supplies cost is an element of variable manufacturing overhead.
-The variable overhead rate variance for supplies is closest to:
A)$47,251 F 
B)$42,901 U 
C)$47,251 U 
D)$42,901 F

Quizplus · Accepted Answer

Variable overhead rate variance = (AH F1F1F1S1F1F1F10 AR)- (AH F1F1F1S1F1F1F10 SR)
= $542,151 - (99,850 hours F1F1F1S1F1F1F10 $5.00 per hour)
= $542,151 - $499,250 = $42,901 U

Hickory Corporation, Which Produces Commercial Safes, Has Provided the Following