Buis Corporation, which makes landing gears, has provided the following data for

Question

Buis Corporation, which makes landing gears, has provided the following data for a recent month:

Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Buis Corporation, which makes landing gears, has provided the following data for a recent month:

Explanation / Answer

Rate variance = 49712-(8200*6.2)= 1128 Favorable Efficiency variance = 6.2*(8200-1300*5.6)= 5704 Unfavorable

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