Answer the following questions using the information below:
Ecocomfort Corporation manufactured 1,000 coolers during October. The following variable overhead data relates to October:
$$\begin{array} { l l }
\text { Variable overhead spending variance } & \$ 1,230 \text { Unfavorable } \
\text { Variable overhead efficiency variance } & \$ 175 \text { Unfavorable } \
\text { Budgeted machine hours allowed for actual output } & 615 \text { machine hours } \
\text { Actual cost per machine hour } & \$ 27 \
\text { Budgeted cost per machine hour } & \$ 25
\end{array}$$
-Calculate the actual machine hours used by Stark during October.
A) 622 hours
B) 615 hours
C) 608 hours
D) 620 hours

Question

Answer the following questions using the information below:
Ecocomfort Corporation manufactured 1,000 coolers during October. The following variable overhead data relates to October:
 $$\begin{array} { l l } 
\text { Variable overhead spending variance } & \$ 1,230 \text { Unfavorable } \
\text { Variable overhead efficiency variance } & \$ 175 \text { Unfavorable } \
\text { Budgeted machine hours allowed for actual output } & 615 \text { machine hours } \
\text { Actual cost per machine hour } & \$ 27 \
\text { Budgeted cost per machine hour } & \$ 25
\end{array}$$
-Calculate the actual machine hours used by Stark during October.
A) 622 hours
B) 615 hours
C) 608 hours
D) 620 hours

Quizplus · Accepted Answer

The variable overhead efficiency variance is calculated as (Actual hours - Budgeted hours) x Budgeted rate. Given the efficiency variance is $175 unfavorable, we solve: (Actual hours - 615) x $25 = $175. Solving for Actual hours gives 622 hours.

Answer the Following Questions Using the Information Below: Ecocomfort Corporation

Answer the Following Questions Using the Information Below:
Ecocomfort Corporation