Heather's Pillow Company manufactures pillows. The current year operating budget is based on production of 20,000 pillows with 0.5 machine-hour allowed per pillow. Variable manufacturing overhead is anticipated to be $220,000.
Actual production was 18,000 pillows using 9,500 machine-hours. Actual variable costs were $20 per machine-hour.
Required:
Calculate the variable overhead spending and efficiency variances.

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The Answer of Heather's Pillow Company manufactures pillows. The current year operating budget is based on production of 20,000 pillows with 0.5 machine-hour allowed per pillow. Variable manufacturing overhead is anticipated to be $220,000.
Actual production was 18,000 pillows using 9,500 machine-hours. Actual variable costs were $20 per machine-hour.
Required:
Calculate the variable overhead spending and efficiency variances.

Heather's Pillow Company Manufactures Pillows