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Answer the Following Questions Using the Information Below:
Ecocomfort Corporation

Question 55

Multiple Choice

Answer the following questions using the information below:
Ecocomfort Corporation manufactured 1,000 coolers during October. The following variable overhead data relates to October:
 Variable overhead spending variance $1,230 Unfavorable  Variable overhead efficiency variance $175 Unfavorable  Budgeted machine hours allowed for actual output 615 machine hours  Actual cost per machine hour $27 Budgeted cost per machine hour $25\begin{array} { l l } \text { Variable overhead spending variance } & \$ 1,230 \text { Unfavorable } \\\text { Variable overhead efficiency variance } & \$ 175 \text { Unfavorable } \\\text { Budgeted machine hours allowed for actual output } & 615 \text { machine hours } \\\text { Actual cost per machine hour } & \$ 27 \\\text { Budgeted cost per machine hour } & \$ 25\end{array}
-Calculate the variable overhead flexible-budget variance.


A) $1,055 unfavorable
B) $1,055 favorable
C) $1,405 unfavorable
D) $1,405 favorable

Correct Answer:

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