Reference no: EM132516945

Kellar Corporation manufactured 2,500 chairs during the month of June. The following variable manufacturing overhead data pertain to June:

1. Budgeted variable overhead cost per unit: $15.00
2. Actual variable manufacturing overhead cost: $21,800
3. Flexible budget amount for variable manufacturing overhead: $21,000
4. Variable manufacturing overhead efficiency variance: $520 F

Question 1: What is the variable overhead rate variance for Kellar Corporation?

A. The variable overhead rate variance = $ 800 F.

B. The variable overhead rate variance = $ 800 U.

C. The variable overhead rate variance = $ 280 U.

D. The variable overhead rate variance = $1,320 F.

E. The variable overhead rate variance = $1,320 U.

Question 2: Fresh-Cut processes bags of frozen organic vegetables sold at specialty grocery stores. Fresh-Cut allocates manufacturing overhead based on direct labour hours. The company's projected manufacturing overhead was $800,000, of which $600,000 is fixed. They expected to process 160,000 cases. The direct labour standard for each case is 15 minutes. The company's actual processing was 180,000 cases of frozen organic vegetables during the year, incurring at total of $840,000 of manufacturing overhead, where $610,000 of it was fixed.

Based on this information, calculate the company's overhead flexible budget variance.

A. The company's overhead flexible budget variance is $ 5,000 U.

B. The company's overhead flexible budget variance $15,000 F.

C. The company's overhead flexible budget variance $60,000 U.

D. The company's overhead flexible budget variance $60,000 F.

E. The company's overhead flexible budget variance $15,000 U.