Need help with Managerial Accounting homework assignment.

Pisces

Pisces

Member
So we just started managerial accounting 2 weeks ago in my dual financial/managerial class and the teacher is horrendous. Like seriously I've never had a worse professor in my life. He doesn't explain anything and we basically are teaching ourselves stuff. I can't figure out a lot of this assignment but there are a few problems similar to this one and I'm hoping that figuring out how to do this one will give me an idea for the others.

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Geschke Corporation, which produces commercial safes, has provided the

above data. The variable overhead efficiency variance for supplies is:

A.$10,947 F

B.$119 U

C.$10,947 U

D.$119 F

I've tried multiple equations and stuff and I can;t seem to get a number matching those ones. Any help would be awesome
 
stuff is kinda different here, but it just jumped into my eye that the budgeted production (100%) is lower than the actual production. from what i know you have to keep that in mind and include the +2.something % somewhere.
 
Well, 8,700 safes should have cost you (according to your standard costs) 9.1*1.7*8700=$134,589. In reality 8,700 safes only cost you $123,642. $134,589 calculated cost - $123,642 actual cost = $10,947.
Hope that helps.
 
yeah i'm hoping that did. thats the first time ive gotten a number equal to one of the choices, and i applied the same reasoning to another problem and got one of the answers as well. i was definitely plugging the wrong numbers in before, but i understand what goes where now. thanks a ton
 
Funny, looks like a problem right out of my notes packet from my class last semester! Formatting-wise, that is...my prof was obsessed with "widgets". Everything was "A company produces 5,600 widgets in the widget factory".

Anyways, slim provided a good explanation.
 
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