Question

Dubberly Corporation's cost formula for its manufacturing overhead is $32,000 per month plus $50 per machine-hour. For the month of March, the company planned for activity of 7,800 machine-hours, but the actual level of activity was 7,750 machine-hours. The actual manufacturing overhead for the month was $446,090. The activity variance for manufacturing overhead in March would be closest to____________.

Answer 1

Answer:

Activity  Variance= $ 58,590 Adverse

Explanation:

The overhead activity variance is the difference between the actual manufacturing overheads and the standard cost of the actual machine hours .

                                                                                                          $

7,750 hours should have cost ( 7,750× $50)                           387,500

Actual manufacturing overheads                                            446,090

Activity  Variance                                                                      58,590 Adverse