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 4,200 machine-hours. Budgeted and actual overhead costs for the month appear below:

	Original Budget Based on 4,200 Machine-Hours			Actual Costs
Variable overhead costs:
Supplies	$	11,950		$	12,430
Indirect labor		34,250			35,400
Fixed overhead costs:
Supervision		20,300			19,940
Utilities		6,500			6,430
Factory depreciation		7,500			7,810
Total overhead cost	$	80,500		$	82,010

The company actually worked 4,400 machine-hours during the month. The standard hours allowed for the actual output were 4,390 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?

Garrison 16e Rechecks 2017-10-31

Multiple Choice

• $950 Favorable

• $240 Favorable

• $110 Unfavorable

• $388 Favorable