Trilite Windows manufactures windows. The 2012 operating budget is based on production of 56,000 windows with 1.0 machine hours allowed per window. Variable manufacturing overhead is anticipated to be $896,000.
Actual production for 2012 was 58,000 windows using 60,000 machine hours. Actual variable costs were $15 per machine hour.
Required:
Determine the variable overhead rate and efficiency variances.

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The Answer of Trilite Windows manufactures windows. The 2012 operating budget is based on production of 56,000 windows with 1.0 machine hours allowed per window. Variable manufacturing overhead is anticipated to be $896,000.
Actual production for 2012 was 58,000 windows using 60,000 machine hours. Actual variable costs were $15 per machine hour.
Required:
Determine the variable overhead rate and efficiency variances.

Trilite Windows Manufactures Windows