The following data have been provided by Spraglin Corporation,a company that produces forklift trucks: Supplies cost is an element of variable manufacturing overhead.The variable overhead efficiency variance for supplies cost is:
A)$484 U
B)$2,643 U
C)$484 F
D)$2,643 F

Question

The following data have been provided by Spraglin Corporation,a company that produces forklift trucks:  Supplies cost is an element of variable manufacturing overhead.The variable overhead efficiency variance for supplies cost is:
A)$484 U 
B)$2,643 U 
C)$484 F 
D)$2,643 F

Quizplus · Accepted Answer

SH = 6,200 trucks F1F1F1S1F1F1F10 3.7 hours per truck = 22,940 hours
Variable overhead efficiency variance = (AH - SH)SR
= (23,160 hours - 22,940 hours)$2.20 per hour
= (220 hours)$2.20 per hour = $484 U

The Following Data Have Been Provided by Spraglin Corporation,a Company