The following data have been provided by Mathews Corporation: Lubricants and supplies are both elements of variable manufacturing overhead. The variable overhead rate variance for lubricants is closest to:

Question

The following data have been provided by Mathews Corporation:  Lubricants and supplies are both elements of variable manufacturing overhead. The variable overhead rate variance for lubricants is closest to:

Quizplus · Accepted Answer

AH × AR = $78, 100
Variable overhead rate variance = (AH × AR)- (AH × SR)
= ($78, 100)- (66, 230 hours × $1.20 per hour)
= $78, 100 - $79, 476
= $1, 376 F

The Following Data Have Been Provided by Mathews Corporation