Taft Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of machine hours. The following data pertain to one month's operations: Variable manufacturing overhead cost incurred: Total flexible budget variable overhead cost: Standard machine hours allowed for actual production: S68,000 $74,550 3,550 MHs Actual machine hours incurred: 3,000 MHs 9 The variable overhead rate variance is: A. $6,550 Favorable В. C. $6,550 Unfavorable $5,000 Favorable D. $5,000 Unfavorable E. None of the above

Taft Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of machine hours. The following data pertain to one month's operations: Variable manufacturing overhead cost incurred: Total flexible budget variable overhead cost: Standard machine hours allowed for actual production: S68,000 $74,550 3,550 MHs Actual machine hours incurred: 3,000 MHs 9 The variable overhead rate variance is: A. $6,550 Favorable В. C. $6,550 Unfavorable $5,000 Favorable D. $5,000 Unfavorable E. None of the above

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Description: Taft Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on thebasis of machine hours. The following data pertain to one month's operations:Variable manufacturing overhead cost incurred:Total

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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