Galimba Corporation, which produces commercial windows, has provided the following data:
-The variable overhead rate variance for supplies is closest to:
A) $5,153 U
B) $6,611 U
C) $5,153 F
D) $6,611 F

Question

Galimba Corporation, which produces commercial windows, has provided the following data: 
-The variable overhead rate variance for supplies is closest to:
A) $5,153 U 
B) $6,611 U 
C) $5,153 F 
D) $6,611 F

Quizplus · Accepted Answer

The variable overhead rate variance is calculated by comparing the actual variable overhead costs to the standard costs allowed for the actual level of activity. The choice $5,153 U indicates an unfavorable variance, meaning actual costs were higher than expected.

Galimba Corporation, Which Produces Commercial Windows, Has Provided the Following