Zitrik Corporation manufactured 130,000 buckets during February. The variable overhead cost-allocation base is $5.30 per machine-hour. The following variable overhead data pertain to February:

What is the variable overhead efficiency variance?

Question

Zitrik Corporation manufactured 130,000 buckets during February. The variable overhead cost-allocation base is $5.30 per machine-hour. The following variable overhead data pertain to February:

What is the variable overhead efficiency variance?

Quizplus · Accepted Answer

Variable overhead efficiency variance = [9,500 - 9,000] × $5.30 = $2,650 unfavorable

Zitrik Corporation Manufactured 130,000 Buckets During February