Mackessy Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual variable overhead costs for the most recent month appear below:
The original budget was based on 7,400 machine-hours. The company actually worked 7,620 machine-hours during the month and the standard hours allowed for the actual output were 7,730 machine-hours. What was the overall variable overhead efficiency variance for the month?
A) $1,496 favorable
B) $1,118 unfavorable
C) $378 favorable
D) $870 unfavorable

Question

Mackessy Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual variable overhead costs for the most recent month appear below: 
The original budget was based on 7,400 machine-hours. The company actually worked 7,620 machine-hours during the month and the standard hours allowed for the actual output were 7,730 machine-hours. What was the overall variable overhead efficiency variance for the month?
A) $1,496 favorable 
B) $1,118 unfavorable 
C) $378 favorable 
D) $870 unfavorable

Quizplus · Accepted Answer

The Answer of Mackessy Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual variable overhead costs for the most recent month appear below: 
The original budget was based on 7,400 machine-hours. The company actually worked 7,620 machine-hours during the month and the standard hours allowed for the actual output were 7,730 machine-hours. What was the overall variable overhead efficiency variance for the month?
A) $1,496 favorable 
B) $1,118 unfavorable 
C) $378 favorable 
D) $870 unfavorable

Mackessy Corporation Applies Manufacturing Overhead to Products on the Basis