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 supplies 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 supplies is closest to:

Quizplus · Accepted Answer

AH × AR = $66, 536
Variable overhead rate variance = (AH × AR)- (AH × SR)
= ($66, 536)- (66, 230 hours × $1.00 per hour)
= $66, 536 - $66, 230
= $306 U

The Following Data Have Been Provided by Mathews Corporation