QUESTION 35 The following data have been provided by Dicus Corporation.docx

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QUESTION 35 The following data have been provided by Dicus Corporation Budgeted production 1200 units Standard machine hour per unit 1.7 machine hours Standard lubricants $1.00 per machine hour Standard supplies $1.50 per machine hour Actual production 1400 units Actual machine hours 2500 machine hours Actual lubricants $2387 Actual supplies $3703 The variable overhead rate variance for supplies is closest to: $133 U $47 F $180 U $133 F Solution variable overhead Rate variance = Actual supplies - standard cost of supplies = 3,703 - (1.50 * 2500) = 3,703 - 3,750 = $ -47 (F) correct option is \"B\" =$47 (F) .

QUESTION 35 The following data have been provided by Dicus Corporation Budgeted
production 1200 units Standard machine hour per unit 1.7 machine hours Standard lubricants
$1.00 per machine hour Standard supplies $1.50 per machine hour Actual production 1400 units
Actual machine hours 2500 machine hours Actual lubricants $2387 Actual supplies $3703 The
variable overhead rate variance for supplies is closest to: $133 U $47 F $180 U $133 F
Solution
variable overhead Rate variance = Actual supplies - standard cost of supplies
= 3,703 - (1.50 * 2500)
= 3,703 - 3,750
= $ -47 (F)
correct option is "B" =$47 (F)

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