O O O $2,325 F $2,325 U $4,500 U

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...
icon
Related questions
Question

Hardev

COTB MC Qu. 10-41 (Algo) Assume the following:
Assume the following:
• The variable portion of the predetermined overhead rate is $1.50 per direct labor-hour.
• The standard labor-hours allowed per unit of finished goods is 3 hours.
• The actual quantity of labor hours worked during the period was 43,550 hours.
The total actual variable manufacturing overhead cost for the period was $63,000.
• The company produced 15,000 units of finished goods during the period.
What is the variable overhead rate variance?
.
Multiple Choice
O $2,325 F
O $2,325 U
O $4,500 U
O $4,500 F
Transcribed Image Text:COTB MC Qu. 10-41 (Algo) Assume the following: Assume the following: • The variable portion of the predetermined overhead rate is $1.50 per direct labor-hour. • The standard labor-hours allowed per unit of finished goods is 3 hours. • The actual quantity of labor hours worked during the period was 43,550 hours. The total actual variable manufacturing overhead cost for the period was $63,000. • The company produced 15,000 units of finished goods during the period. What is the variable overhead rate variance? . Multiple Choice O $2,325 F O $2,325 U O $4,500 U O $4,500 F
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning