Geschke Corporation, which produces commercial safes, has provided the following data: Supplies cost is an element of variable manufacturing overhead.
The variable overhead rate variance for supplies is closest to:

Question

Geschke Corporation, which produces commercial safes, has provided the following data:  Supplies cost is an element of variable manufacturing overhead.
The variable overhead rate variance for supplies is closest to:

Quizplus · Accepted Answer

AH × AR = $123,642
Variable overhead rate variance = (AH × AR) − (AH × SR)
= ($123,642) − (79,100 hours × $1.70 per hour)
= $123,642 − $134,470
= $10,828 F

Geschke Corporation, Which Produces Commercial Safes, Has Provided the Following