Russo Corporation manufactured 17,000 air conditioners during November.The overhead cost-allocation rate is $35.50 per machine-hour.The following variable overhead data pertain to November:
$\begin{array}{lll}&\text { Actual }&\text { Budgeted } \
\text { Production } & 17,000 \text { units } & 19,000 \text { units } \
\text { Machine-hours } & 8,325 \text { hours } & 9,500 \text { hours } \
\text { Variable overhead cost per machine-hour: } & \$ 35.00 & \$ 35.50
\end{array}$
What is the variable overhead efficiency variance?

Question

Quizplus · Accepted Answer

The variable overhead efficiency variance is calculated as (Actual machine-hours - Budgeted machine-hours for actual production) x Budgeted overhead rate. Here, (8,325 - 8,500) x $35.50 = -$6,212.50, which is favorable.

Russo Corporation Manufactured 17,000 Air Conditioners During November What Is the Variable Overhead Efficiency Variance? A)$6,212

Russo Corporation Manufactured 17,000 Air Conditioners During November What Is the Variable Overhead Efficiency Variance?
A)$6,212