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Silverton Manufacturing's variable overhead is applied on the basis of machine-hours. The standard cost card for product P27K specifies 3.8 machine-hours per unit of P27K. The standard variable overhead rate is $9.40 per machine-hour. During the most recent month, 2,300 units of product P27K were made and 8,510 machine-hours were used. The actual variable overhead incurred was $82,547. Required: A. What was the variable overhead rate variance for the month? B. What was the variable overhead efficiency variance for the month?

Walnut Corporation produces a product that sells for $78.00. Fixed costs are $325,000, and variable costs are $32.00 per unit. Walnut can buy a new production machine that will increase fixed costs by $18,500 per year but will decrease variable costs by $5.50 per unit. Compute the contribution margin per unit if the machine is purchased. a) $46.00 b) $48.50 c) $51.50 d) $52.00 e) $54.00

PVR Ltd. sold office equipment on March 1, 2015, for a cash price of $520,000. The equipment had a cost of $600,000 and accumulated depreciation of $220,000. Requirements: (a) What is the book value of the equipment on the date sold? (b) What is the gain or loss on the sale of the equipment?

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