Cirilla's Weathervane Company manufactures weathervanes. The current year operating budget is based on the production of 10,000 weathervanes with 1.25 machine-hour allowed per weathervane. Variable manufacturing overhead is anticipated to be $300,000.
Actual production was 11,000 weathervanes using 12,100 machine-hours. Actual variable costs were $23.75 per machine-hour.
Required:
Calculate the variable overhead spending and the efficiency variances.

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The Answer of Cirilla's Weathervane Company manufactures weathervanes. The current year operating budget is based on the production of 10,000 weathervanes with 1.25 machine-hour allowed per weathervane. Variable manufacturing overhead is anticipated to be $300,000.
Actual production was 11,000 weathervanes using 12,100 machine-hours. Actual variable costs were $23.75 per machine-hour.
Required:
Calculate the variable overhead spending and the efficiency variances.

Cirilla's Weathervane Company Manufactures Weathervanes