The managerial accountant at Red Ribbon Distribution Company prepared a report in the previous quarter and reported 4,200 actual machine hours were used. The actual rate per machine hour was $32.75 while the standard rate was $28.50. The standard hours allowed was calculated at 4,000. Compute the variable manufacturing overhead (MOH)rate variance to determine the accuracy of the forecasted MOH and, the variable MOH efficiency variance, to determine whether the volume of output was consistent with the number of machine hours used.

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The Answer of The managerial accountant at Red Ribbon Distribution Company prepared a report in the previous quarter and reported 4,200 actual machine hours were used. The actual rate per machine hour was $32.75 while the standard rate was $28.50. The standard hours allowed was calculated at 4,000. Compute the variable manufacturing overhead (MOH)rate variance to determine the accuracy of the forecasted MOH and, the variable MOH efficiency variance, to determine whether the volume of output was consistent with the number of machine hours used.

The Managerial Accountant at Red Ribbon Distribution Company Prepared a Report