The following data have been provided by Gerlach 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)$966 U
B)$5,897 U
C)$5,897 F
D)$966 F

Question

The following data have been provided by Gerlach 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)$966 U 
B)$5,897 U 
C)$5,897 F 
D)$966 F

Quizplus · Accepted Answer

The variable overhead efficiency variance for supplies cost measures the difference between the actual amount of supplies used and the standard amount that should have been used for the actual level of production.

As per the given data, we do not have any actual or standard values for supplies cost, so we cannot calculate the variance. Therefore, the answer is D, which indicates that the variance cannot be calculated with the given information.

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