Question
In: Accounting
The following data for the Safety Company pertain to the production of 3,000 clay pigeons during...
The following data for the Safety Company pertain to the production of 3,000 clay pigeons during July:
Standard variable-overhead cost was $5.00 per pound of clay.
The actual variable-overhead cost was $11,340.
Standard variable-overhead cost allowed for units produced was $12,000.
Variable-overhead efficiency variance was $340 unfavorable.
_____ is the variable-overhead rate variance.
Group of answer choices
$800 unfavorable
$1,000 favorable
$800 favorable
$560 unfavorable
Solutions
Expert Solution
Correct answer----------$1,000 Favorable
Working
| Variable Overhead Rate Variance | ||||||
| ( | Standard Rate | - | Actual Rate | ) | x | Actual pounds |
| ( | $ 5.00 | - | $ 4.59 | ) | x | 2468 |
| $ 1,000.00 | ||||||
| Variance | $ 1,000.00 | Favourable-F | ||||
Working to calculate actual rate
| Variable Overhead Efficiency Variance | ||||||
| ( | Standard pounds | - | Actual pounds | ) | x | Standard Rate |
| ( | 2400 | - | 2468 | ) | x | $ 5.00 |
| $ (340.00) | ||||||
| Variance | $ 340.00 | Unfavourable-U | ||||
ekkarill92 answered 1 year agoRelated Solutions
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Question
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Actual materials price
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Standard materials price
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