Figure 11-4. Kris Company calculates its predetermined rates using practical volume,which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000,of which $994,000 is fixed overhead.The actual results for the year are as follows:
Refer to Figure 11-4.Calculate the variable overhead efficiency variance.
A)$36,850 U
B)$80,000 U
C)$36,850 F
D)$4,000 U
E)none of these

Question

Figure 11-4. Kris Company calculates its predetermined rates using practical volume,which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000,of which $994,000 is fixed overhead.The actual results for the year are as follows:
 Refer to Figure 11-4.Calculate the variable overhead efficiency variance.
A)$36,850 U 
B)$80,000 U 
C)$36,850 F 
D)$4,000 U 
E)none of these

Quizplus · Accepted Answer

The Answer of Figure 11-4. Kris Company calculates its predetermined rates using practical volume,which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000,of which $994,000 is fixed overhead.The actual results for the year are as follows:
 Refer to Figure 11-4.Calculate the variable overhead efficiency variance.
A)$36,850 U 
B)$80,000 U 
C)$36,850 F 
D)$4,000 U 
E)none of these