Harley Davidson makes motorcycle engines

by | Mar 18, 2020 | Uncategorized

  

Harley Davidson makes motorcycle engines in its Milwaukee plant. 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.

a)What is the rate variances for the variable overhead item power cost?

b)What is the efficiency variance of the variable overhead item power cost?

  

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