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 5,100 machine-hours. Budgeted and actual overhead costs for the month appear below: The company actually worked 5,250 machine-hours during the month. The standard hours allowed for the actual output were 5,240 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?
A) $480 Favorable
B) $118 Unfavorable
C) $330 Favorable
D) $686 Favorable

Question

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 5,100 machine-hours. Budgeted and actual overhead costs for the month appear below:  The company actually worked 5,250 machine-hours during the month. The standard hours allowed for the actual output were 5,240 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?
A) $480 Favorable 
B) $118 Unfavorable 
C) $330 Favorable 
D) $686 Favorable

Quizplus · Accepted Answer

The Answer of 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 5,100 machine-hours. Budgeted and actual overhead costs for the month appear below:  The company actually worked 5,250 machine-hours during the month. The standard hours allowed for the actual output were 5,240 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?
A) $480 Favorable 
B) $118 Unfavorable 
C) $330 Favorable 
D) $686 Favorable

Wadding Corporation Applies Manufacturing Overhead to Products on the Basis