42 Requtred intormetion The following Information applies to the questions displ

Question

42 Requtred intormetion The following Information applies to the questions displayed below Abbott has a standard varlable overhead rate of $5.20 per machlne hour, and each unlt produced has a standard time allowed of 260 hours. The company's static budget was based on 46,000 units. Actual results for the year follow. Part 2 of2 Actual units produced: 44,000 Actual machine hours worked: 110,000 Abbott's variable-overhead efficiency varlance is: Multiple Choice $22,000 favorable. $-22,000 unfavorable $22.880 favorable. $22.88 unfevorabe None of the above.

Explanation / Answer

variable-overhead efficiency variance

= Standard overhead rate x (Standard hrs – Actual hrs)

=5.20*(2.6*44000-110,000)

= $22880 Favourable

Option C is Correct

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.