Variable Overhead Variances Assume that the best cost driver that Sony has for v

Question

Variable Overhead Variances Assume that the best cost driver that Sony has for variable factory overhead in the assembly department is machine hours. During April, the company budgeted 580,000 machine hours and $6,000,000 for its Texas plant's assembly department. The actual variable overhead incurred was $6,200,000, which was related to 600,000 machine hours. Do not round until your final answers. Round your answers to the nearest dollar. (a) Determine the variable overhead spending variance. $Answer 0 Incorrect AnswerCorrect (b) Determine the variable overhead efficiency variance. $Answer 206,900 Incorrect AnswerCorrect

Explanation / Answer

Correct Answer A Spending Varaince 6000000- 6200000 = 200000 U B Efficiency Variance (Standard Hours-Actual Hours)*Standard rate (580000-600000)*6000000/580000      206,897 U

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