Question
A company reported the following information: budgeted actual production in units 12000 8600 machine hours per unit of finished product 0.7 total machine hours 5640
A company reported the following information: budgeted actual production in units 12000 8600 machine hours per unit of finished product 0.7 total machine hours 5640 variable overhead rate in dollars per machine hour 1.75 total variable overhead costs in dollars 10716 total fixed overhead costs in dollars 33600 39200 If the company allocates overhead costs to products based on machine hours, what will be the variable overhead efficiency variance (in dollars)? A. 665 unfavorable B. 4830 unfavorable C. 4830 favorable D. 4165 favorable E. 665 favorable Rationale:
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