60.1K

Verified Solution

Link Copied!

Let's continue with our story on coach Rural Meyer. Rural is concerned that his shady activities did not being profitable results. He wanted to investigate his spending variances in greater detail. The si variances as they relate to a cturing of replica memorabilia are listed as follows Materials Quantity Variance $750 unfavorable Material Price Variance S 500 favorable Labor Efficiency Vrance $700 unfavorable Labor Rate Variance 54,700 unfavorable Variable Overhead Efficiency Variance $1,600 favorable Variable Overhead Rate Variance 51.800 unfavorable A Rural Meyer lacks the knowledge to deal with these variances. He asks you, a much more intelligent soul, for help. Which two variances would you recommend that Rural Meyer investigate in great detail? Give me at least one example of something that could contribute towards each of the two variances to be investigated (5 points) B. Assume variable overhead is applied on the basis of machine hours. The production of each unit of replica memorabilia s andard of using machine hours a standard rate of $10 per machine hour. In reality, Rural's shady workers incurred an actual variable overhead rate of S13 per machine hour 250 total units of replica memorabilia were produced. What was the actual number of machine hours points)

Answer & Explanation Solved by verified expert

See Answer