Marjorie Décor is a custom home designer for drapery.The standard material allowed for each window is 0.5 of medium quality material,which has a standard cost of $10 per kilogram.The current operating budget is based on production of 112,000 windows with 1.0 machine hours allowed per window.Variable overhead is anticipated to be $1,792,000.Actual production was 116,000 using 120,000 machine hours.Actual variable costs were $15 per machine hour.
Required:
a.Determine the spending variance
b.Determine the efficiency variance

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The Answer of Marjorie Décor is a custom home designer for drapery.The standard material allowed for each window is 0.5 of medium quality material,which has a standard cost of $10 per kilogram.The current operating budget is based on production of 112,000 windows with 1.0 machine hours allowed per window.Variable overhead is anticipated to be $1,792,000.Actual production was 116,000 using 120,000 machine hours.Actual variable costs were $15 per machine hour.
Required:
a.Determine the spending variance
b.Determine the efficiency variance

Marjorie Décor Is a Custom Home Designer for Drapery