Keppler Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's cost formula for variable overhead cost is $4.90 per machine-hour. The actual variable overhead cost for the month was $25,160. The original budget for the month was based on 5,000 machine-hours. The company actually worked 5,320 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,220 machine-hours. What was the variable overhead efficiency variance for the month?
A) $1,078 unfavorable
B) $490 unfavorable
C) $418 favorable
D) $908 favorable

Question

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The Answer of Keppler Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's cost formula for variable overhead cost is $4.90 per machine-hour. The actual variable overhead cost for the month was $25,160. The original budget for the month was based on 5,000 machine-hours. The company actually worked 5,320 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,220 machine-hours. What was the variable overhead efficiency variance for the month?
A) $1,078 unfavorable
B) $490 unfavorable
C) $418 favorable
D) $908 favorable

Keppler Corporation Applies Manufacturing Overhead to Products on the Basis