Question 1
Zitrik Corporation manufactured 130,000 buckets during February. The variable overhead cost-allocation base is $5.30 per machine-hour. The following variable overhead data pertain to February:
Production | 130,000 units | 130,000 units |
Machine-hours | 9,500 hours | 9,000 hours |
Variable overhead cost per machine-hour | $5.35 | $5.30 |
What is the variable overhead efficiency variance?
◦ $2,650 unfavorable
◦ $2,675 favorable
◦ $2,650 favorable
◦ $2,675 unfavorable.
Question 2
Zitrik Corporation manufactured 90,000 buckets during February. The variable overhead cost-allocation base is $5.10 per machine-hour. The following variable overhead data pertain to February:
Production | 90,000 units | 90,000 units |
Machine-hours | 9,800 hours | 9,000 hours |
Variable overhead cost per machine-hour | $5.25 | $5.10 |
What is the actual variable overhead cost?
◦ $472,500
◦ $459,000
◦ $51,450
◦ $49,980