5. Thorne Company has the following information available for the past year. They use machine hours to allocate overhead. Actual total overhead $75,000 Actual fixed overhead $32,500 Actual machine hours 10,000 Standard hours for the units produced 9,500 Standard variable overhead rate $4.50 NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. What is the variable overhead efficiency variance? Is it favorable or unfavorable?
5. Thorne Company has the following information available for the past year. They use machine hours to allocate overhead.
Actual total overhead $75,000
Actual fixed overhead $32,500
Actual machine hours 10,000
Standard hours for the units produced 9,500
Standard variable overhead rate $4.50
NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes.
What is the variable overhead efficiency variance?
Is it favorable or unfavorable?
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