Wall Corporation, which produces commercial safes, has provided the following data: Supplies cost is an element of variable manufacturing overhead. The variable overhead rate variance for supplies is closest to:

Question

Wall Corporation, which produces commercial safes, has provided the following data:  Supplies cost is an element of variable manufacturing overhead. The variable overhead rate variance for supplies is closest to:

Quizplus · Accepted Answer

AH × AR = $706, 566
Variable overhead rate variance = (AH × AR)- (AH × SR)
= ($706, 566)- (76, 360 hours × $8.60 per hour)
= $706, 566 - $656, 696
= $49, 870 U

Wall Corporation, Which Produces Commercial Safes, Has Provided the Following