Uses a standard cost system

Assignment Help Financial Accounting

Reference no: EM13753164

Luis Corporation uses a standard cost system in which it applies manufacturing overhead to products on basis of machine hours (MH's). The company's standard requires 4 Machine Hours for each unit produced. Luis budgets to produce 1,100 units per month with a budgeted variable manufacturing overhead of $88,000 per month. During the last month, the company produced 1,000 units of product and incurred a total of $85,125 in Variable Manufacturing Overhead.

Question: If the Variable Manufacturing Overhead Efficiency Variance was $800 Favorable, what was the variable manufacturing overhead rate variance?

A) $4,325 Favourable B) $4,325 Unfavourable C) $5,925 Unfavourable D) $5,925 Favourable E) None of Above

Reference no: EM13753164

Questions Cloud

Data structure used to implement an associative structure : In computing, a hash table (such as a Java HashMap) is a data structure used to implement an associative structure that maps keys to values.

Write a critical assessment of thearticles : Select two current, professional journal articles that areat least four pages in length. You must write a critical assessment of thearticles for this assignment. Keep in mind, the research databases found in theCSU Online Library are a great source f..

Find the investments NPV : Andre's retires in 5 years. He would have to purchase equipment costing $400,000 to equip a building and invest an additional $150,000 for inventories. Different buildings have a annual net cash inflow of about $160,000. Anders would close the buildi..

Two items of business equipment : Sissie owns two items of business equipment. They were both purchased in 2010 for $100,000, both have a seven-year recovery period, and both have an adjusted basis of $37,490. Sissie is considering selling these assets in 2014. One of them is worth $..

Uses a standard cost system : Luis Corporation uses a standard cost system in which it applies manufacturing overhead to products on basis of machine hours (MH's). The company's standard requires 4 Machine Hours for each unit produced. Luis budgets to produce 1,100 units per mont..

Assuming no units in the beginning inventory : Clayton Company produces a single product. Last year, the company's variable production costs totaled $8,000 and its fixed manufacturing overhead costs totaled $4,800. The company produced 4,000 units during the year and sold 3,600 units. Assuming no..

Importance of developing a sustainable supply chain : explain the importance of developing a sustainable supply chain. In addition, describe three initiatives that IKEA is doing to make its supply chain sustainable

Prepares her federal income tax return : Sheila inherited 300 shares of stock, 100 shares of Magenta and 200 shares of Purple. She has a stockbroker sell the shares for her, uses the proceeds for personal expenses, and thinks nothing further about the transactions. What issues does she face..

Describe the specific problem you have identified : My Final Project is on Refinishing an Armoire: Describe the specific problem you have identified and how this problem can be resolved with a tutorial

User Account

All Pages