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Kris Company Calculates Its Predetermined Rates Using Practical Volume, Which

Question 147

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Kris Company calculates its predetermined rates using practical volume, which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead.The actual results for the year are as follows:
Kris Company calculates its predetermined rates using practical volume, which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead.The actual results for the year are as follows:     -  Calculate the variable overhead efficiency variance. A)  $36,850 U B)  $80,000 U C)  $36,850 F D)  $4,000 U E)  None of these.
-
Calculate the variable overhead efficiency variance.


A) $36,850 U
B) $80,000 U
C) $36,850 F
D) $4,000 U
E) None of these.

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