s per unit of output able overhead rate pertain to operations for the last month: 8.8 hours $ 15.20 per hour variable manufacturing overhead cost 2,950 hours $ 45,610 150 units
s per unit of output able overhead rate pertain to operations for the last month: 8.8 hours $ 15.20 per hour variable manufacturing overhead cost 2,950 hours $ 45,610 150 units
Chapter1: Financial Statements And Business Decisions
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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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
Transcribed Image Text:lards for variable manufacturing overhead have been
mpany that makes only one product:
´s per unit of output
Lable overhead rate
pertain to operations for the last month:
variable manufacturing overhead cost
E
overhead efficiency variance for the month?
,546 U
776 U
8.8 hours
$15.20 per hour
DU
,064 F
2,950 hours
$ 45,610
150 units

Transcribed Image Text:The following standards for variable manufacturing overhead have been
established for a company that makes only one product:
Standard hours per unit of output
Standard variable overhead rate
The following data pertain to operations for the last month:
Actual hours
Actual total variable manufacturing overhead cost
Actual output
What is the variable overhead efficiency variance for the month?
Multiple Choice
$25,546 U
$24,776 U
$770 U
8.8 hours
$15.20 per hour
$20,064 F
2
$ 45
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