19) Lazy Guy Corporation manufactured 6,000 chairs during June. The following variable overhead data relates to June:Budgeted variable overhead cost per unit$10.00Actual variable manufacturing overhead cost$52,800Flexible-budget amount for variable manufacturing overhead$46,900Variable manufacturing overhead efficiency variance$790 unfavorableWhat is the variable overhead spending variance? A) $5,110 favorableB) $5,900 favorable C) $5,900 unfavorable D) $5,110 unfavorableAnswer: Explanation: Variable overhead flexible-budget variance = $52,800 - $46,900 = $5,900 (U)Variable overhead spending variance = $5,900 (U) − $790 (U) = $5,110 (U)
Diff: 3Objective: 3AACSB: Application of knowledge20) Outdoor Gear Corporation manufactured 5,000 coolers during October. The following variable overhead data relates to October:Variable overhead spending variance$1,310 UnfavorableVariable overhead efficiency variance$192 UnfavorableBudgeted machine hours allowed for actual output615 machine hoursActual cost per machine hour$27Budgeted cost per machine hour$24Calculate the actual machine hours used by Stark during October.
Diff: 2Objective: 3AACSB: Application of knowledge