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

Quizplus · Accepted Answer

SH = 8,700 units × 9.10 hours per unit = 79,170 hours
Variable overhead efficiency variance = (AH − SH) × SR
= (79,100 hours − 79,170 hours) × $1.70 per hour
= (−70 hours) × $1.70 per hour
= $119 F

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