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2 years ago

Rath Company provided the following information:

Business

1 answer:

Anit [1.1K]2 years ago

7 0

Answer:

The correct answer is $8,316( Unfavorable) and $10,500 ( Favorable).

Explanation:

According to the scenario, the computation of the given data are as follows:

Actual Variable OH AH × SVOR SH × SVOR

$222,816 $57,200×$3.75 = $214,500 $60,000×$3.75 = $225,000

Variable OH spending variance Variable OH efficiency variance

$214,500 - $22,816) $225,000 - $214,500

= $8,316( Unfavorable) = $10,500 ( Favorable)

Hence, Variable OH spending variance = $8,316( Unfavorable)

And Variable OH efficiency variance = $10,500 ( Favorable)

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