Question
The 3D Printer Company applies manufacturing overhead to products on the basis of standard machine hours. Budgeted and actyual overhead costs for recent month appear
The 3D Printer Company applies manufacturing overhead to products on the basis of standard machine hours. Budgeted and actyual overhead costs for recent month appear below: Original Budget Variable Overhead Costs: Supplies : 7,100 Actual : 7,290 Indirect Labor : 10,650 Actual 10,000 Fixed overhead costs : Supervision : 14,910 Actual : 14,420 Utilities : 14,200 Actual : 14,250 Factory Depreciation : 61,770 Actual : 61,419 Total Overhead Cost : 108,630 Actual : 107,370 The company budgeted its original budget on 7100 machine hours. The company actually worked 7,060 Machine Hours during month. The standard hours allowed for actual output of the month totaled 6990 Machine Hours.
What was the overall variable overhead efficiency variance for the month?
Answer was $175 Unfavorable but I don't get why
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