McGraw-Hill Connect | Student Performance AF 363 Fall 2017 Midterm 3 Part 2 Obje
ID: 2589832 • Letter: M
Question
McGraw-Hill Connect | Student Performance AF 363 Fall 2017 Midterm 3 Part 2 Objective 15-2 76 The value: 5.55 points MC Qu. 75 The following information for the past yea The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply factory overhead: Actual total factory overhead cost Actual fixed overhead cost Budgeted fixed overhead cost Actual machine hours Standard machine hours for the units manufactured Denominator volume-machine hours Standard variable overhead rate per machine hour $24,000 $10,000 $11,000 5,000 4,800 5,500 $3 Under a threevariance breakdown (decomposition) of the total factory overhead variance, the factory overhead eficiency variance is $400 favorable O $600 unfavorable. $1,400 favorable O $1,400 unfavorable. O $2.000 favorable.Explanation / Answer
So correct answer is B
Standard labor hours for actual production 4,800 Hours Variable OH Effeciency variance= (Actual hours - Standard hours for acual production) *Standard rate Variable OH Effeciency variance= (5000 - 4800)* 3 600 UnFavorable