Hickory Corporation, which produces commercial safes, has provided the following data: Supplies cost is an element of variable manufacturing overhead.
-The variable overhead efficiency variance for supplies is closest to:
A)$47,251 U
B)$4,350 U
C)$4,350 F
D)$47,251 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 efficiency variance for supplies is closest to:
A)$47,251 U 
B)$4,350 U 
C)$4,350 F 
D)$47,251 F

Quizplus · Accepted Answer

SH = 10,100 units F1F1F1S1F1F1F10 9.8 hours per unit = 98,980 hours
Variable overhead efficiency variance = (AH - SH)SR
= (99,850 hours - 98,980 hours)$5.00 per hour
= (870 hours)$5.00 per hour = $4,350 U

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