The following data have been provided by Gerlach Corporation,a company that produces forklift trucks: Supplies cost is an element of variable manufacturing overhead.The variable overhead efficiency variance for supplies cost is:

Question

The following data have been provided by Gerlach Corporation,a company that produces forklift trucks:  Supplies cost is an element of variable manufacturing overhead.The variable overhead efficiency variance for supplies cost is:

Quizplus · Accepted Answer

SH = 2,000 trucks × 8.6 hours per truck = 17,200 hours
Variable overhead efficiency variance = (AH - SH)× SR
= (16,970 hours - 17,200 hours)× $4.20 per hour
= (-230 hours)× $4.20 per hour
= $966 F

The Following Data Have Been Provided by Gerlach Corporation,a Company