Bell Manufacturing expects to use 5 Machine Hours (MH) for every unit produced- MH is the cost driver for Variable Manufacturing Overhead (MO), which only involves electricity cost.Expectations regarding electricity cost are: pay $0.10 per kilowatt hour (kwh), and use 80 kwh for each MH used.For the month, actual production was 1,000 units, actual MH used were 6,500, actual kwh used were 600,000, and the actual rate paid per kwh was $0.12.

Compute the Variable MO Spending Variance (VOSV) and label unfavorable (U) or favorable (F).

$12,000 (U)

$20,000 (U)

$72,000 (U)

$8,000 (U)

Using the information for Bell Manufacturing from the previous problem, compute the Variable MO Efficiency Variance (VOEV) and label unfavorable (U) or favorable (F).

$9,600 (U)

$8,000 (U)

$150 (U)

$12,000 (U)