48) Termeer Inc. has provided the following data concerning one of the products

Question

48) Termeer Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhea products on the basis of direct labor-hours Standard Quantity or Hours per Unit ofßtandard Price or Output 0.30 hours Rate Inputs Variable manufacturing overhead $2.30 per hour The company has reported the following actual results for the product for August: Actual output Actual direct labor-hours Actual variable overhead rate Actual variable overhead cost 8,000units 2,380 hours S 2.10 per hour $ 4,998 The variable overhead efficiency variance for the month is closest to A) $42 U B) S46 U C) $42 F D) S46 F

Explanation / Answer

Option d is correct

$46 F

Explanation:

Standard hours allowed=std. Hours per unit×actual output

=.30 hours×8000 units

=2,400 hours

Variable overhead efficiency variance=SR × (AH-SH)

=$2.30×(2,380-2400)

=$46 F

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