Author Question: R&N Manufacturing produces music boxes. This year's budget was based on the production of 3,000 ... (Read 15 times)

Scollins7 · **on:** Feb 5, 2023

Question 1

Which of the following is not an explanation for a favorable variable overhead spending variance?
◦ Used variable overhead items efficiently
◦ Efficient use of the activity base
◦ Paid less than expected for indirect labor
◦ Paid less than expected for indirect material

Question 2

R&N Manufacturing produces music boxes. This year's budget was based on the production of 3,000 music boxes using a standard of 3 direct labor hours per music box and $4 variable overhead per direct labor hour. R&N incurred 9,200 hours to produce 2,950 music boxes. If actual variable overhead for the year is $32,000, what is R&N's variable overhead spending variance?
◦ $4,800 unfavorable
◦ $4,800 favorable
◦ $4,000 unfavorable
◦ $4,000 favorable

Rcfelber · **Reply #1 on:** Feb 5, 2023

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