Question
Merle Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 4,000
Merle Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 4,000 machine-hours. Budgeted and actual overhead costs for the month appear below:
| Based on 4000 | ||
| Mach Hours | ||
| Var Ovhd Cost | ||
| Supplies | $ 14,000.00 | $ 13,150.00 |
| Indirect Labor | 27200 | 24390 |
| Fixed Ovhd Cost | ||
| Supervision | 19900 | 19540 |
| Utilities | 4700 | 4360 |
| Factory depreciation | 8800 | 8620 |
| Total Ovh Cost | $ 74,600.00 | $ 70,060.00 |
The company actually worked 3,690 machine-hours during the month. The standard hours allowed for the actual output were 3,620 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?
| A. | $721 Unfavorable |
| B. | $467 Favorable |
| C. | $254 Unfavorable |
| D. | $880 Favorable |
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The Oxford Handbook Of The Sociology Of Finance
Authors: Karin Knorr Cetina, Alex Preda
1st Edition
0198708777, 978-0198708773
