stion 5 Walsh Manufacturing Corporation uses a standard cost system for the prod

Question

stion 5 Walsh Manufacturing Corporation uses a standard cost system for the production of its ski lift chairs. Warp uses machine-hours as an overhead base. The variable manufacturing overhead standards for each chair are 1.2 machine-hours at a standard cost of $18 per hour. yet ered ts out of 2 Flag During the month of September, Warp incurred 34,000 machine-hours in the production of 32,000 ski lift chairs. The total variable manufacturing overhead cost was $649,400. What is Warp's variable overhead rate variance for September? stion Select one: O a. $84,040 Favorable O b. $37,400 Unfavorable O c. $41,800 Favorable O d. $79,200 Favorable uestion 6 Walsh Corporation makes a product with the following standard costs

Explanation / Answer

b) $ 37400 Unfavorable

Notes

Variable Overhead Rate Variance = ( SR × Actual Machine Hours ) - Actual Variable Overhead Cost

($18 Per Hour * 34000 Hours) - $ 649400

= $ 612000- $ 649400

= ($ 37400)

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