Leongatha Rustic Letterboxes Company manufactures rustic letterboxes.The 2018 operating budget is based on the production of 10 000 rustic letterboxes with 1.5 machine-hours allowed per weathervane.Variable manufacturing overhead is anticipated to be $300 000.
Actual production for 2018 was 11 000 rustic letterboxes using 12 100 machine-hours.Actual variable costs were $18.50 per machine-hour.
Required:
Calculate the variable overhead spending and the efficiency variances.

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The Answer of Leongatha Rustic Letterboxes Company manufactures rustic letterboxes.The 2018 operating budget is based on the production of 10 000 rustic letterboxes with 1.5 machine-hours allowed per weathervane.Variable manufacturing overhead is anticipated to be $300 000.
Actual production for 2018 was 11 000 rustic letterboxes using 12 100 machine-hours.Actual variable costs were $18.50 per machine-hour.
Required:
Calculate the variable overhead spending and the efficiency variances.

Leongatha Rustic Letterboxes Company Manufactures Rustic Letterboxes