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10-11-2019
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Dubberly Corporation's cost formula for its manufacturing overhead is $31,100 per month plus $50 per machine-hour. For the month of March, the company planned for activity of 8,000 machine-hours, but the actual level of activity was 7,930 machine-hours. The actual manufacturing overhead for the month was $454,110.The activity variance for manufacturing overhead in March would be closest to:A. 23010 UB. 23010 FC. 3500 UD. 3500 F

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10-11-2019

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Dubberly Corporation's cost formula for its manufacturing overhead is $31,100 per month plus $50 per machine-hour. For March, the company planned for activity of 8,000 machine-hours, but the actual level of activity was 7,930 machine-hours. The actual manufacturing overhead for the month was $454,110.

activity variance for manufacturing overhead= (50*8000) - (454,110 - 31,100)= 23,010 unfavorable.

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