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
Many thought ideological politics was over in the United States, but 2012 showed strong ideological
Overhead stretch for the shoulder muscles. Lean back to create the stretch using your body weight.
Typical Startup Cost Categories Cont.
Cost Accounting 14