Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: The original budget was based on 4,200 machine-hours. The company actually worked 4,350 machine-hours during the month and the standard hours allowed for the actual output were 4,190 machine-hours. What was the overall variable overhead efficiency variance for the month?
A) $130 Unfavorable
B) $950 Favorable
C) $1,310 Favorable
D) $1,440 Unfavorable

Question

Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:  The original budget was based on 4,200 machine-hours. The company actually worked 4,350 machine-hours during the month and the standard hours allowed for the actual output were 4,190 machine-hours. What was the overall variable overhead efficiency variance for the month?
A) $130 Unfavorable 
B) $950 Favorable 
C) $1,310 Favorable 
D) $1,440 Unfavorable

Quizplus · Accepted Answer

The Answer of Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:  The original budget was based on 4,200 machine-hours. The company actually worked 4,350 machine-hours during the month and the standard hours allowed for the actual output were 4,190 machine-hours. What was the overall variable overhead efficiency variance for the month?
A) $130 Unfavorable 
B) $950 Favorable 
C) $1,310 Favorable 
D) $1,440 Unfavorable

Mongar Corporation Applies Manufacturing Overhead to Products on the Basis