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Zitrik Corporation manufactured 90,000 buckets during February. The variable overhead cost-allocation base is $5.05 per machine-hour. The following variable overhead data pertain to February:

Actual Budgeted
Production 90,000 units 90,000 units
Machine-hours 9,800 hours 9,000 hours
Variable Overhead Cost per Machine-hour $5.15 $5.05

What is the variable overhead spending variance?

Respuesta :

melovemelol
1. What is the variable overhead spending variance? (HINT: The answer $980 unfavorable, but I need work to support this)
2. What is the variable overhead efficiency variance? (HINT: The answer is $4,040 unfavorable, but I need work to support this)

Zitrik Corporation manufactured 90,000 buckets during February. The variable overhead cost-allocation base is $5.05 per machine-hour. The following variable overhead data pertain to February:

  • Actual Budgeted
  • Production 90,000 units 90,000 units
  • Machine-hours 9,800 hours 9,000 hours
  • Variable Overhead Cost per Machine-hour $5.15 $5.05

What is variable?

Variable is not consistent or having a fixed pattern; liable to change.

What is overhead spending?

Overhead spending is an ongoing cost for running a product, business, or system

What is variance?

Variance is a measure of how far a set of numbers is spread out from their average value.

To learn more about variable and overhead spending refer

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