Kris Company calculates its predetermined rates using practical volume, which is 325,000 units. The standard cost...

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Kris Company calculates its predetermined rates using practical volume, which is 325,000 units. The standard cost system allo

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Answer 1

Answer #1

Variable overhead efficiency variance

= (SH - AH) * SR

= (318,000*3 - 965,000)*(4,260,000-994,000)/(325,000*3)

= (954,000 - 965,000)*3.35

= 36,850 U

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Answer 2

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