Cold Products manufactured 31,000 ice chests during September. The variable overhead cost allocation base is $14.50 per
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Cold Products manufactured 31,000 ice chests during September. The variable overhead cost allocation base is $14.50 per machine-hour. The following variable overhead date pertain to September:
Actual Budget
Production 31,000 units 27,000 units
Machine-hours 14,600 hrs. 10,100 hrs.
Variable OH cost per machine $14.25 $14.50
What is the variable overhead spending variance?
A. $3,650 Favorable
B. $43,554 Unfavorable
C. $39,904 Unfavorable
D. $65,250 Unfavorable
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