Assume that the best cost driver that Sony has for variable factory overhead in the assembly department is machine hours. During April, the company budgeted 580,000 machine hours and $6,000,000 for its Texas plant's assembly department. The actual variable overhead incurred was $6,200,000, which was related to 600,000 machine hours. a) determine the variable overhead spending variance b) determine the variable overhead efficiency variance
Assume that the best cost driver that Sony has for variable factory overhead in the assembly department is machine hours. During April, the company budgeted 580,000 machine hours and $6,000,000 for its Texas plant's assembly department. The actual variable overhead incurred was $6,200,000, which was related to 600,000 machine hours. a) determine the variable overhead spending variance b) determine the variable overhead efficiency variance
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Assume that the best cost driver that Sony has
for variable factory overhead in the assembly
department is machine hours. During April, the
company budgeted 580,000 machine hours and
$6,000,000 for its Texas plant's assembly
department. The actual variable overhead
incurred was $6,200,000, which was related to
600,000 machine hours.
a) determine the variable overhead spending
variance
b) determine the variable overhead efficiency
variance
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