Question

See Clear Company manufactures clear plastic CD cases. It applies variable overhead based on the number of machine hours used. Information regarding See Clear’s overhead for the month of
December follows:


During December, See Clear had the following actual results:
Number of units produced and sold .... 628,000
Actual variable overhead cost ....... $30,240
Actual machine hours ........ 63,000

Required:
Compute See Clear’s variable overhead rate variance, variable overhead efficiency variance, and over or under-applied variableoverhead.


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  • CreatedFebruary 27, 2015
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