The following data have been provided by Moretta Corporation, a company that produces forklift trucks: Supplies cost is an element of variable manufacturing overhead.The variable overhead efficiency variance for supplies cost is:
A)$135 U
B)$135 F
C)$966 U
D)$966 F

Question

The following data have been provided by Moretta Corporation, a company that produces forklift trucks:  Supplies cost is an element of variable manufacturing overhead.The variable overhead efficiency variance for supplies cost is:
A)$135 U 
B)$135 F 
C)$966 U 
D)$966 F

Quizplus · Accepted Answer

SH = 3,800 trucks × 2.9 hours per truck = 11,020 hours
Variable overhead efficiency variance = (AH - SH)× SR
= (10,930 hours - 11,020 hours)× $1.50 per hour
= (-90 hours)× $1.50 per hour
= $135 F

The Following Data Have Been Provided by Moretta Corporation, a Company