ACCOUNTING
Multiple Choice
Roberts Corporation manufactured 100,000 buckets during February. The overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February.
Actual Budgeted
Production 100,000 units 100,000 units
Machine-hours 9,800 hours 10,000 hours
Variable overhead cost per machine-hour $5.25 $5.00
What is the variable overhead efficiency variance?
a. $1,000 favorable
b. $1,450 unfavorable
c. $2,450 unfavorable
d. none of the above
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