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