Swandow Pillow Company manufactures pillows.The 2018 operating budget is based on production of 40 000 pillows with 0.5 machine-hour allowed per pillow.Variable manufacturing overhead is anticipated to be $220 000.Actual production for 2018 was 36 000 pillows using 19 000 machine-hours.Actual variable costs were $10 per machine-hour.
Required:
Calculate the variable overhead spending and efficiency variances.
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Question

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The Answer of Swandow Pillow Company manufactures pillows.The 2018 operating budget is based on production of 40 000 pillows with 0.5 machine-hour allowed per pillow.Variable manufacturing overhead is anticipated to be $220 000.Actual production for 2018 was 36 000 pillows using 19 000 machine-hours.Actual variable costs were $10 per machine-hour.
Required:
Calculate the variable overhead spending and efficiency variances.
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Swandow Pillow Company Manufactures Pillows