Rudy Corporation Makes Automotive Engines

question 133

Essay

Rudy Corporation makes automotive engines.For the most recent month,budgeted production was 6,000 engines.The standard power cost is $8.80 per machine-hour.The company's standards indicate that each engine requires 6.1 machine-hours.Actual production was 6,400 engines.Actual machine-hours were 38,730 machine-hours.Actual power cost totaled $350,628.Required:
Determine the rate and efficiency variances for the variable overhead item power cost and indicate whether those variances are unfavorable or favorable.Show your work!

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Definitions:

Otis-Lennon School Ability

A standardized test designed to assess the school abilities of students, measuring verbal, quantitative, and spatial reasoning abilities.

Terman-Stanford-Binet Intelligence Scale

An individually administered intelligence test that was revised from the original Binet-Simon Scale by Lewis Madison Terman and others at Stanford University, used to assess human intelligence.

Intelligence Quotient

A numerical measure of a person's cognitive abilities relative to others, typically determined through standardized tests.

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability of an individual at a specific chronological age.