Russo corporation manufactured 22,000 air conditioners during November. The overhead cost allocation base is $30.50 per machine hour. The following variable overhead data pertain to November: Actual Budgeted Production 22,000 units 24,000 units Machine-hours 15,675 hours 16,800 hours Variable overhead cost per machine hour $30 $30.50 What is the variable overhead spending variance? A. $7,837.5 unfavorable B. $7,837.50 favorable C. $8,400.00 favorable D. $8400.00 unfavorable

Russo corporation manufactured 22,000 air conditioners during November. The overhead cost allocation base is $30.50 per machine hour. The following variable overhead data pertain to November: Actual Budgeted Production 22,000 units 24,000 units Machine-hours 15,675 hours 16,800 hours Variable overhead cost per machine hour $30 $30.50 What is the variable overhead spending variance? A. $7,837.5 unfavorable B. $7,837.50 favorable C. $8,400.00 favorable D. $8400.00 unfavorable

Name: Russo corporation manufactured22,000 air conditioners duringNovember.
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Description: Russo corporation manufactured22,000 air conditioners duringNovember. The overhead costallocation base is $30.50 per machinehour. The following variable overheaddata pertain to November:Actual BudgetedProduction 22,000 units 24,000 unitsMachine-hour

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

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.

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Question

Russo corporation manufactured
22,000 air conditioners during
November. The overhead cost
allocation base is $30.50 per machine
hour. The following variable overhead
data pertain to November:
Actual Budgeted
Production 22,000 units 24,000 units
Machine-hours 15,675 hours 16,800
hours
Variable overhead cost per machine
hour $30 $30.50
What is the variable overhead
spending variance?
A. $7,837.5 unfavorable
B. $7,837.50 favorable
C. $8,400.00 favorable
D. $8400.00 unfavorable

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