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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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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