56,000 windows with 1.0 machine hours allowed per window. Variable manufacturing overhead is anticipated to be $896,000. Actual production for was 58,000 windows using 60,000 machine hours. Actual variable costs were $15 per machine hour. Required: What are the variable overhead rate and efficiency variances? A. Rate variance - $73,025 favourable; Efficiency variance - $49,600 favourable B. Rate variance -

56,000 windows with 1.0 machine hours allowed per window. Variable manufacturing overhead is anticipated to be $896,000.

Actual production for was 58,000 windows using 60,000 machine hours. Actual variable costs were $15 per machine hour.

Required:

What are the variable overhead rate and efficiency variances?

A.

Rate variance - $73,025 favourable; Efficiency variance - $49,600 favourable

B.

Rate variance - $77,025 unfavourable; Efficiency variance - $39,600 unfavourable

C.

Rate variance - $60,000 favourable; Efficiency variance - $32,000 unfavourable

D.

Rate variance - $35,500 favourable; Efficiency variance - $45,700 favourable

Expert Answer

C. Rate variance - $60,000 favourable; Efficiency View the full answer