Author Question: Russo Corporation manufactured 21,000 air conditioners during November. The overhead cost-allocation ... (Read 66 times)

karateprodigy · **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:

Actual

Budgeted

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:

Actual

Budgeted

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

tennis14576 · **Reply #1 on:** Mar 6, 2021

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