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:
A) $10,828 F
B) $10,947 U
C) $10,828 U
D) $10,947 F

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:
A) $10,828 F 
B) $10,947 U 
C) $10,828 U 
D) $10,947 F

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