Kissack Corporation produces large commercial doors for warehouses and other facilities. In the most recent month, the company budgeted production of 4,000 doors. Actual production was 4,300 doors. According to standards, each door requires 9.3 machine-hours. The actual machine-hours for the month were 40,430 machine-hours. The budgeted supplies cost is $6.20 per machine-hour. The actual supplies cost for the month was $234,614. The variable overhead efficiency variance for supplies cost is:

Question

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The variable overhead efficiency variance for supplies cost is calculated as follows:Variable overhead efficiency variance = (Actual machine-hours - Standard machine-hours) x Budgeted supplies cost per machine-hour= (40,430 - 4,000 x 9.3) x $6.20= (40,430 - 37,200) x $6.20= 3,230 x $6.20= $2,728 U

Kissack Corporation Produces Large Commercial Doors for Warehouses and Other