Answer :
Final answer:
To calculate the variable overhead efficiency variance, compare the actual machine hours used with the standard machine hours allowed, then use the formula (Standard Machine Hours - Actual Machine Hours) × Variable Overhead Rate. Without the variable overhead rate, the variance cannot be calculated.
Explanation:
To calculate the variable overhead efficiency variance, we need to compare the actual machine hours used with the standard machine hours allowed. The formula for variable overhead efficiency variance is:
Variable Overhead Efficiency Variance = (Standard Machine Hours - Actual Machine Hours) × Variable Overhead Rate
Given that Radiant used 500 machine hours and made 130 connectors, we need to calculate the standard machine hours. If we assume that the standard machine hours per connector is 4 (this is just an example, the actual number may vary), then the standard machine hours for 130 connectors would be 130 × 4 = 520 machine hours.
Plugging in the values into the formula, we get:
Variable Overhead Efficiency Variance = (520 - 500) × Variable Overhead Rate
Unfortunately, we don't have information about the variable overhead rate, so we cannot calculate the exact value of the variance. Please provide the variable overhead rate to calculate the variance.
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