Acri Corporation produces large commercial doors for warehouses and other facili

Question

Acri Corporation produces large commercial doors for warehouses and other facilities. In the most recent month, the company budgeted production of 6,900 doors. Actual production was 7,300 doors. According to standards, each door requires 5.6 machine-hours. The actual machine-hours for the month were 40,360 machine-hours. The standard supplies cost, and element of variable manufacturing overhead, is $4.20 per machine-hour. The actual supplies cost for the month was $168,251. The variable overhead efficiency variance for supplies cost is:

A. $2,184 U

B. $3,445 U

C. $2,184 F

D.$3,445 F

Please show me the work not just the answer, Thanks so much!

Explanation / Answer

The variable overhead efficiency variance for supplies cost is B) $2,184 F

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