Can someone please answer these so i can check them? Thank you! Fabian Fabricati
ID: 2528806 • Letter: C
Question
Can someone please answer these so i can check them? Thank you!
Fabian Fabrication machines heavy-duty brake rotors that are used on commercial airliners. Fabian's management developed the following standard costs: andard direct labor hours per rotor tandard overhead rate per direct labor hour 2.40 $11.25 Actual activity for October: Actual overhead costs incurred Actual direct labor hours $%136,800 11,40 4,1 Actual rotors machined 5 What is the variable manufacturing overhead rate variance in October? . What is the variable manufacturing overhead efficiency variance in October?Explanation / Answer
Computation of variable Overhead Rate & Efficiency & Spending Variance Direct Variable Overhead Rate Variance ( SR-AR)*AH ($11.25-$12)*11400 -8550 Un Favourable Direct Variable Overhead Efficiency Variance (SH-AH)SR (9840-11400)*$11.25 -17550 Un Favourable Note Actual Rate (AR)=($136800/11400)=$12/Hour Standard Hour=(2.40Hour/RotorX 4100 Rotor)=9840Hour