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Pleiss Corporation Applies Manufacturing Overhead to Products on the Basis

Question 50

Multiple Choice

Pleiss Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's standard variable manufacturing overhead rate is $2.40 per machine-hour. The actual variable manufacturing overhead cost for the month was $5,240. The original budget for the month was based on 2,100 machine-hours. The company actually worked 2,270 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,280 machine-hours. What was the variable overhead efficiency variance for the month?


A) $24 Favorable
B) $232 Favorable
C) $208 Favorable
D) $432 Unfavorable

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