Knowledge Check $02$

Xcel Technologies, Incorporated applies variable manufacturing overhead to products based on machine hours. The standard variable overhead rate is $$5$ per machine hour. The standard time allowed for producing one unit is $2$ machine hours. During the month of August, the company produced $500$ units. It incurred actual variable costs of $$5,655$ and used $870$ machine hours. Calculate the variable overhead rate variance for the month of August.

multiple choice $1$

$$1,500$ unfavorable

$$1,305$ favorable Incorrect

$$1,500$ favorable

$$1,305$ unfavorable

Knowledge Check $03$

Xcel Technologies, Incorporated applies variable manufacturing overhead to products based on machine hours. The standard variable overhead rate is $$5$ per machine hour. The standard time allowed for producing one unit is $2$ machine hours. During the month of August, the company produced $500$ units. It incurred actual variable costs of $$5,655$ and used $870$ machine hours. Calculate the variable overhead efficiency variance for the month of August.

multiple choice $2$

$$650$ favorable

$$650$ unfavorable Incorrect

$$845$ favorable

$$845$ unfavorable

Knowledge Check $04$

BonJoy Company applies variable overhead on the basis of direct labor hours. For the month of June, the variable overhead efficiency variance is unfavorable but the variable overhead rate variance is favorable. Which of the following can be concluded from this?

multiple choice $3$

The fixed overhead costs were not incurred.

The actual variable overhead rate was more than budgeted.

The quantity of actual direct labor hours used was more than budgeted. Correct

The quantity of actual direct labor hours used was less than budgeted.