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Layette Company manufactures pillows. The 2017 operating budget was based on production of 26,000 pillows, with 0.25 machine-hours allowed per pillow. Budgeted variable overhead per
Layette Company manufactures pillows. The 2017 operating budget was based on production of 26,000 pillows, with 0.25 machine-hours allowed per pillow. Budgeted variable overhead per hour was $26. Actual production for 2017 was 29,000 pillows using 6,050 machine-hours. Actual variable costs were $23 per machine-hour. Calculate the following: a. the budgeted variable overhead for 2017; b. the variable overhead spending variance; and c. the variable overhead efficiency variance. a. Calculate the budgeted variable overhead for 2017. Layette Company's budgeted variable overhead for 2017 is $ b. Calculate the variable overhead spending variance. (Complete all answer boxes.) Layette Company's variable overhead spending variance is 18,150 Favorable c. Calculate the variable overhead efficiency variance. (Complete all answer boxes.) Layette Company's variable overhead efficiency variance is $11700 Unfavorable 169,000 ces -11700 Unfavorable
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