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Author Question: Russo Corporation manufactured 21,000 air conditioners during November. The overhead cost-allocation ... (Read 39 times)

karateprodigy

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on: Mar 6, 2021

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:

ActualBudgeted
Production17,000 units19,000 units
Machine-hours8,325 hours9,500 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:

ActualBudgeted
Production21,000 units24,000 units
Machine-hours13,300 hours14,400 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
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by karateprodigy on Mar 6, 2021

tennis14576

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Reply #1 on: Mar 6, 2021
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karateprodigy

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

ecabral0

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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