(Appendix 11A)A manufacturing company uses a standard costing system in which standard machine-hours (MHs)is the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The variable overhead efficiency variance for the period is closest to:
A)$300 F
B)$1, 465 U
C)$1, 760 U
D)$1, 775 U

Question

(Appendix 11A)A manufacturing company uses a standard costing system in which standard machine-hours (MHs)is the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below:  The following data pertain to operations for the most recent period:  The variable overhead efficiency variance for the period is closest to:
A)$300 F 
B)$1, 465 U 
C)$1, 760 U 
D)$1, 775 U

Quizplus · Accepted Answer

Variable overhead efficiency variance = (AH - SH)× SR
= (6, 300 MHs - 5, 994 MHs)× $5.75 per MH
= (306 MHs)× $5.75 per MH
= $1, 759.50 U

(Appendix 11A)A Manufacturing Company Uses a Standard Costing System in Which