| Buis Corporation, which makes landing gears, has provided the following data for a recent month: |
| Budgeted production | 2,400 | gears |
| Standard machine-hours per gear | 6.1 | machine-hours |
| Budgeted supplies cost | $6.70 | per machine-hour |
| Actual production | 1,200 | gears |
| Actual machine-hours | 7,750 | machine-hours |
| Actual supplies cost (total) | $49,862 | |
| Required: |
| Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. (Input all amounts as positive values. Leave no cells blank – be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.) |
| Variable overhead rate variance | $ | (Click to select)FUNone | |||||||||||
| Variable overhead efficiency variance | $ | (Click to select)FUNone | |||||||||||
6,400 hours 6,550 hours 6,700 hours 6,850 hours |
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