Wall Corporation, which produces commercial safes, has provided the following data:

  1. Supplies cost is an element of variable manufacturing overhead.

The variable overhead efficiency variance for supplies is closest to:

  • $3,096 F
  • $52,966 U
  • $52,966 F
  • $3,096 U

Answer:

SH = 9,500 units × 8.00 hours per unit = 76,000 hours
Variable overhead efficiency variance = (AH − SH) × SR
= (76,360 hours − 76,000 hours) × $8.60 per hour
= (360 hours) × $8.60 per hour
= $3,096 U

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