10. Moeller Electric manufactures light fixtures. What is Moeller Electric\'s va
ID: 2439450 • Letter: 1
Question
10. Moeller Electric manufactures light fixtures.What is Moeller Electric's variable manufacturing overhead sales-volume variance?
The following information pertains to the company's manufacturing overhead data.
Budgeted output units
30,000 fixtures
Budgeted machine-hours
10,000 hours
Budgeted variable manufacturing
overhead costs for 30,000 fixtures
$80,625
Actual output units produced
44,000 fixtures
Actual machine-hours used
10,000 hours
Actual variable manufacturing
overhead costs
$121,000
Select one: a. $37,625 favourable b. $37,625 unfavourable c. $40,375 unfavourable d. $40,375 favourable 10. Moeller Electric manufactures light fixtures.
What is Moeller Electric's variable manufacturing overhead sales-volume variance?
The following information pertains to the company's manufacturing overhead data.
Budgeted output units
30,000 fixtures
Budgeted machine-hours
10,000 hours
Budgeted variable manufacturing
overhead costs for 30,000 fixtures
$80,625
Actual output units produced
44,000 fixtures
Actual machine-hours used
10,000 hours
Actual variable manufacturing
overhead costs
$121,000
Select one: a. $37,625 favourable b. $37,625 unfavourable c. $40,375 unfavourable d. $40,375 favourable
What is Moeller Electric's variable manufacturing overhead sales-volume variance?
The following information pertains to the company's manufacturing overhead data.
Budgeted output units
30,000 fixtures
Budgeted machine-hours
10,000 hours
Budgeted variable manufacturing
overhead costs for 30,000 fixtures
$80,625
Actual output units produced
44,000 fixtures
Actual machine-hours used
10,000 hours
Actual variable manufacturing
overhead costs
$121,000
Select one: a. $37,625 favourable b. $37,625 unfavourable c. $40,375 unfavourable d. $40,375 favourable
Explanation / Answer
Option - B $ 37625 unfavourable
Variable manufacturing overhead sale volume variance
= ( Actual output - budgeted output ) × budgeted variable overhead rate
= (44000 - 30000)×$80625/30000
= $37625 unfavourable
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.