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Trilite Windows Manufactures Windows

Question 101

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Trilite Windows manufactures windows. The 2012 operating budget is based on production of 56,000 windows with 1.0 machine hours allowed per window. Variable manufacturing overhead is anticipated to be $896,000.
Actual production for 2012 was 58,000 windows using 60,000 machine hours. Actual variable costs were $15 per machine hour.
Required:
Determine the variable overhead rate and efficiency variances.

Correct Answer:

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Budgeted variable overhead per hour = $8...

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