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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 4,200
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?
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