Question 1
Russo Corporation manufactured 17,000 air conditioners during November. The overhead cost-allocation rate is $35.50 per machine-hour. The following variable overhead data pertain to November:
| Production | 17,000 units | 19,000 units |
| Machine-hours | 8,325 hours | 9,500 hours |
| Variable overhead cost per machine-hour: | $35.00 | $35.50 |
What is the variable overhead efficiency variance?
◦ $6,212.50 favorable
◦ $6,212.50 unfavorable
◦ $4,750.00 favorable
◦ $4,750.00 unfavorable
Question 2
Russo Corporation manufactured 21,000 air conditioners during November. The overhead cost-allocation base is $34.25 per machine-hour. The following variable overhead data pertain to November:
| Production | 21,000 units | 24,000 units |
| Machine-hours | 13,300 hours | 14,400 hours |
| Variable overhead cost per machine-hour: | $34.00 | $34.25 |
What is the variable overhead spending variance?
◦ $3,600.00 unfavorable
◦ $3,325.00 unfavorable
◦ $3,600.00 favorable
◦ $3,325.00 favorable
Examples of USP labels Source: Courtesy of Novartis Pharmaceuticals Corporation and Mallinckrodt Pha
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