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 Data