Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the...
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Accounting
Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 3,600 machine-hours. Budgeted and actual overhead costs for the month appear below:
Original Budget Based on 3,600 Machine-Hours
Actual Costs
Variable overhead costs:
Supplies
$
11,160
$
11,830
Indirect labor
26,280
27,970
Fixed overhead costs:
Supervision
19,700
19,340
Utilities
5,900
5,770
Factory depreciation
6,900
7,210
Total overhead cost
$
69,940
$
72,120
The company actually worked 3,900 machine-hours during the month. The standard hours allowed for the actual output were 3,890 machine-hours for the month. What was the overall variable overhead efficiency variance for the month? (Round your intermediate calculations to 2 decimal places.)
A) $760 Favorable
B) $104 Unfavorable
C) $180 Favorable
D) $656 Favorable
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