Martin Company,which applies overhead to production on the basis of machine hours,reported the following data for the period just ended:
Actual units produced: 9,000
Actual variable overhead incurred: $54,400
Actual machine hours worked: 16,000
Standard variable overhead cost per machine hour: $3.50
If Martin estimates two hours to manufacture a completed unit,the company's variable-overhead efficiency variance is:
A)$1,600 favorable.
B)$1,600 unfavorable.
C)$7,000 favorable.
D)$7,000 unfavorable.
E)some other amount not listed abovE.

Question

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The Answer of Martin Company,which applies overhead to production on the basis of machine hours,reported the following data for the period just ended:
Actual units produced: 9,000
Actual variable overhead incurred: $54,400
Actual machine hours worked: 16,000
Standard variable overhead cost per machine hour: $3.50
If Martin estimates two hours to manufacture a completed unit,the company's variable-overhead efficiency variance is:
A)$1,600 favorable.
B)$1,600 unfavorable.
C)$7,000 favorable.
D)$7,000 unfavorable.
E)some other amount not listed abovE.

Martin Company,which Applies Overhead to Production on the Basis of Machine