Russo Corporation manufactured 16,000 air conditioners during November. The overhead cost-allocation base is $31.50 per machine-hour. The following variable overhead data pertain to November:                                       Actual Budgeted                   Production     16,000 units 18,000 units                   Machine-hours     7,875 hours 9,000 hours                   Variable overhead cost per machine-hour: $31.00 $31.50                                                 What is the variable overhead spending variance?                      A) $4,500 unfavorable                           B) $3,937.50 unfavorable                          C) $4,500 favorable                           D) $3,937.50 favorable                                                        What is the variable overhead efficiency variance?                      A) $3,937.50 favorable                         B) $3,937.50 unfavorable                         C) $4,500 favorable                            D) $4,500 unfavorable                                                         What is the total variable overhead flex budget variance                     A) $7,875 unfavorable                          B) $3,937.50 unfavorable                          C) $7,875 favorable                            D) $3,937.50 favorable

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Russo Corporation manufactured 16,000 air conditioners during November. The overhead cost-allocation base is $31.50 per machine-hour. The following variable overhead data pertain to November:
                             
        Actual Budgeted                  
Production     16,000 units 18,000 units                  
Machine-hours     7,875 hours 9,000 hours                  
Variable overhead cost per machine-hour: $31.00 $31.50                  
                             
What is the variable overhead spending variance?                     
A) $4,500 unfavorable                          
B) $3,937.50 unfavorable                         
C) $4,500 favorable                          
D) $3,937.50 favorable                         
                             
What is the variable overhead efficiency variance?                     
A) $3,937.50 favorable                        
B) $3,937.50 unfavorable                        
C) $4,500 favorable                           
D) $4,500 unfavorable                          
                             
What is the total variable overhead flex budget variance                    
A) $7,875 unfavorable                         
B) $3,937.50 unfavorable                         
C) $7,875 favorable                           
D) $3,937.50 favorable                         
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