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Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company
based its budget on 4,600 machine-hours. Budgeted and actual overhead costs for the month appear below:
Variable overhead costs:
Supplies
Indirect labor
Fixed overhead costs:
Supervision
$ 11,880
Utilities
Original Budget
Based on 4,600
Machine-Hours
Actual Costs
40,100
$ 12,830
40,800
20,700
20,340
6,900
6,870
7,900
8,210
$ 87,480
$ 89,050
Factory depreciation
Total overhead cost
The company actually worked 4,710 machine-hours during the month. The standard hours allowed for the actual output were 4,700 machine-hours for
the month. What was the overall variable overhead efficiency variance for the month?
Multiple Choice
$280 Favorable
$113 Unfavorable
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