Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead efficiency variance.
A) $14,300 unfavorable.
B) $21,450 favorable.
C) $4,000 unfavorable.
D) $4,000 favorable.
E) $21,450 unfavorable.

Question

Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead efficiency variance. 
A) $14,300 unfavorable. 
B) $21,450 favorable. 
C) $4,000 unfavorable. 
D) $4,000 favorable. 
E) $21,450 unfavorable.

Quizplus · Accepted Answer

AH × SVR = (81,500 × $14.30) = $1,165,450
Applied = SH × SVR = (80,000 × $14.30) = $1,144,000
Variable overhead efficiency variance = $21,450 unfavorable

Fletcher Company Collected the Following Data Regarding Production of One