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Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 5,000
Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 5,000 machine-hours. Budgeted and actual overhead costs for the month appear below:
Original Budget Based on 5,000 Machine-Hours | Actual Costs | |
---|---|---|
Variable overhead costs: | ||
Supplies | $ 12,500 | $ 13,230 |
Indirect labor | 46,000 | 50,250 |
Fixed overhead costs: | ||
Supervision | 21,100 | 20,740 |
Utilities | 7,300 | 7,310 |
Factory depreciation | 8,300 | 8,610 |
Total overhead cost | $ 95,200 | $ 100,140 |
The company actually worked 5,020 machine-hours during the month. The standard hours allowed for the actual output were 5,010 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?
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