Russo Corporation manufactured 17,000 air conditioners during November. The overhead cost-allocation rate is $35.50 per machine-hour. The following variable overhead data pertain to November:

What is the variable overhead efficiency variance?

Question

Russo Corporation manufactured 17,000 air conditioners during November. The overhead cost-allocation rate is $35.50 per machine-hour. The following variable overhead data pertain to November:

What is the variable overhead efficiency variance?

Quizplus · Accepted Answer

[8,325 - (17,000 × 9,500/19,000) mh] × $35.50 = $6,212.50 favorable

Russo Corporation Manufactured 17,000 Air Conditioners During November