The following data have been provided by Petri Corporation: Indirect labor and power are both elements of variable manufacturing overhead. The variable overhead rate variance for power is closest to:

Question

The following data have been provided by Petri Corporation:  Indirect labor and power are both elements of variable manufacturing overhead. The variable overhead rate variance for power is closest to:

Quizplus · Accepted Answer

Variable overhead rate variance = (AH × AR)- (AH × SR)
= ($108, 158)- (54, 510 hours × $2.00 per hour)
= $108, 158 - $109, 020
= $862 F

The Following Data Have Been Provided by Petri Corporation