Pearle Corporation Makes Automotive Engines

question 166

Essay

Pearle Corporation makes automotive engines. For the most recent month, budgeted production was 3,300 engines. The standard power cost is $9.20 per machine-hour. The company's standards indicate that each engine requires 2.1 machine-hours. Actual production was 3,400 engines. Actual machine-hours were 7,160 machine-hours. Actual power cost totaled $61,815.
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:

Epigenetics

The study of heritable changes in gene expression that occur without changes in the DNA sequence.

Gene Expression

The process by which the instructions in our DNA are converted into a functional product, such as a protein, influencing physical traits and bodily functions.

Neurons

Neurons are the fundamental units of the brain and nervous system, responsible for receiving sensory input from the external world, processing it, and sending commands to the body.

Phenotypic Plasticity

An individual’s capacity to develop into a range of phenotypes.