Cirilla's Weathervane Company manufactures weathervanes. The 2012 operating budget is based on the production of 10,000 weathervanes with 1.25 machine-hour allowed per weathervane. Variable manufacturing overhead is anticipated to be $300,000.
Actual production for 2012 was 11,000 weathervanes using 12,100 machine-hours. Actual variable costs were $23.75 per machine-hour.
Required:
Calculate the variable overhead rate and the efficiency variances.

Question

Quizplus · Accepted Answer

The Answer of Cirilla's Weathervane Company manufactures weathervanes. The 2012 operating budget is based on the production of 10,000 weathervanes with 1.25 machine-hour allowed per weathervane. Variable manufacturing overhead is anticipated to be $300,000.
Actual production for 2012 was 11,000 weathervanes using 12,100 machine-hours. Actual variable costs were $23.75 per machine-hour.
Required:
Calculate the variable overhead rate and the efficiency variances.

Cirilla's Weathervane Company Manufactures Weathervanes