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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 4,800
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 4,800 machine-hours. Budgeted and actual overhead costs for the month appear below:
Original Budget Based on 4,800 Machine-Hours | Actual Costs | ||||||||||
Variable overhead costs: | |||||||||||
Supplies | $ | 12,000 | $ | 13,030 | |||||||
Indirect labor | 43,200 | 45,750 | |||||||||
Fixed overhead costs: | |||||||||||
Supervision | 20,900 | 20,540 | |||||||||
Utilities | 7,100 | 7,090 | |||||||||
Factory depreciation | 8,100 | 8,410 | |||||||||
Total overhead cost | $ | 91,300 | $ | 94,820 | |||||||
The company actually worked 5,120 machine-hours during the month. The standard hours allowed for the actual output were 5,110 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?
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