Bonnie Company applies overhead based on machine hours. The variable overhead standard is 22 hours at $16.50 per hour. During March, Bonnie spent $264,150 for variable overhead, and 13,230 machine hours were used to produce 190 units. What is the variable overhead rate variance? Note: Do not round intermediate calculation. Multiple Choice $14,600 unfavorable $45,855 unfavorable $12,300 unfavorable $45,855 favorable
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Bonnie Company applies
Note: Do not round intermediate calculation.
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$14,600 unfavorable
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$45,855 unfavorable
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$12,300 unfavorable
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$45,855 favorable
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