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

Quizplus · Accepted Answer

SH = 9, 500 units × 8.00 hours per unit = 76, 000 hours
Variable overhead efficiency variance = (AH - SH)× SR
= (76, 360 hours - 76, 000 hours)× $8.60 per hour
= (360 hours)× $8.60 per hour
= $3, 096 U

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