Question
Ellen Corporation manufactured 310,700 beer mugs during April. The variable overhead cost-allocation base is $9.00 per machine-hour. The following variable overhead data pertain to April:
Ellen Corporation manufactured 310,700 beer mugs during April. The variable overhead cost-allocation base is $9.00 per machine-hour. The following variable overhead data pertain to April:
| Actual | Budgeted | |
| Production | 310,700 units | 310,700 units |
| Machine-hours | 15,600 hours | 13,000 hours |
| Variable overhead cost per machine-hour | $11.75 | $9.00 |
What is the variable overhead spending variance?
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
12th edition
1305041399, 1285078586, 978-1-133-9524, 9781133952428, 978-1305041394, 9781285078588, 1-133-95241-0, 978-1133952411
