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The following standards for variable manufacturing overhead have been established for a company that makes only one product:



Standard hours per unit of output 8.6 hours
Standard variable overhead rate $ 15.00 per hour

The following data pertain to operations for the last month:



Actual hours 2,925 hours
Actual total variable manufacturing overhead cost $ 44,635
Actual output 200 units

What is the variable overhead efficiency variance for the month?

Sagot :

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

((200*8.6)- 2925)*15 = 18,075

The term "variable overhead efficiency variance" refers to both the impact of the discrepancy between the actual manufacturing time and the projected manufacturing time. Variations in productive efficiency are the cause of it.

The difference between the actual manufacturing costs of a product and the costs that the business entity budgeted for it is measured by the variable overhead efficiency variance. It may therefore result from a disparity in productive efficiency.

Variable overhead efficiency variance = ((Actual output * Standard hours per unit of output) - Actual hours) * Standard variable overhead rate.

Learn more about variable overhead efficiency here:

https://brainly.com/question/22984161

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