The Maxwell Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July: • Actual variable manufacturing overhead cost incurred: $22,620
• Actual machine-hours worked: 1,600 hours
• Variable overhead rate variance: $3,420 Unfavorable
• Total variable overhead spending variance: $4,620 Unfavorable
The variable overhead efficiency variance for July is:
A)$8,040 Unfavorable
B)$8,040 Favorable
C)$1,200 Unfavorable
D)$1,200 Favorable

Question

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The Answer of The Maxwell Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July: • Actual variable manufacturing overhead cost incurred: $22,620
• Actual machine-hours worked: 1,600 hours
• Variable overhead rate variance: $3,420 Unfavorable
• Total variable overhead spending variance: $4,620 Unfavorable
The variable overhead efficiency variance for July is:
A)$8,040 Unfavorable
B)$8,040 Favorable
C)$1,200 Unfavorable
D)$1,200 Favorable

The Maxwell Corporation Has a Standard Costing System in Which