Question 1
Russo Corporation manufactured 21,000 air conditioners during November. The overhead cost-allocation base is $34.50 per machine-hour. The following variable overhead data pertain to November:
| Production | 21,000 units | 23,000 units |
| Machine-hours | 12,700 hours | 13,800 hours |
| Variable overhead cost per machine-hour: | $34.00 | $34.50 |
What is the total variable overhead variance?
◦ $2,900.00 unfavorable
◦ $3,450.00 unfavorable
◦ $2,900.00 favorable
◦ $3,450.00 favorable
Question 2
Teddy Company uses a standard cost system. In May, $234,000 of variable manufacturing overhead costs were incurred and the flexible-budget amount for the month was $240,000. Which of the following variable manufacturing overhead entries would have been recorded for May?
◦
| Accounts Payable Control and other accounts | 240,000 |
| Work-in-Process Control | 240,000 |
◦
| Work-in-Process Control | 240,000 |
| Variable Manufacturing Overhead Allocated | 240,000 |
◦
| Work-in-Process Control | 234,000 |
| Accounts Payable Control and other accounts | 234,000 |
◦
| Accounts Payable Control and other accounts | 234,000 |
| Variable Manufacturing Overhead Control | 234,000 |
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