Variable Overhead Variances
Assume that the best cost driver that Sony has for variable factory
overhead in the assembly department is machine hours. During April,
the company budgeted 680,000 machine hours and $7,000,000 for its
Texas plant's assembly department. The actual variable overhead
incurred was $7,300,000, which was related to 700,000 machine
hours.
Do not round until your final answers. Round your
answers to the nearest dollar.
(a) Determine the variable overhead spending variance.
$Answer Answer
f
or
u
(b) Determine the variable overhead efficiency variance.
$Answer
F
or
U
Note
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