Huger Corporation Makes Automotive Engines

question 35

Essay

Huger Corporation makes automotive engines. For the most recent month, budgeted production was 6,900 engines. The budgeted power cost is $5.10 per machine-hour. The company's standards indicate that each engine requires 7.5 machine-hours. Actual production was 7,000 engines. Actual machine-hours were 53,240 machine-hours. Actual power cost totaled $247,598.
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:

Conventional

Following traditional forms or standards, typically in relation to behavior or beliefs.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior, often influenced by culture, religion, and personal beliefs.

Pruning

In neuroscience, the process by which extra neurons and synaptic connections are eliminated to increase the efficiency of neuronal transmissions.

Preconventional

Relating to the earliest level of moral development, in Kohlberg's theory, where behavior is influenced by anticipation of pleasure or pain rather than by societal rules.