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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 4,400
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 4,400 machine-hours. Budgeted and actual overhead costs for the month appear below:
Original Budget Based on 4,400 Machine-Hours- | Actual Costs | ||||||||||
Variable overhead costs: | |||||||||||
Supplies | $ | 11,640 | $ | 12,630 | |||||||
Indirect labor | 37,200 | 38,600 | |||||||||
Fixed overhead costs: | |||||||||||
Supervision | 20,500 | 20,140 | |||||||||
Utilities | 6,700 | 6,650 | |||||||||
Factory depreciation | 7,700 | 8,010 | |||||||||
Total overhead cost | $ | 83,740 | $ | 86,030 | |||||||
The company actually worked 4,560 machine-hours during the month. The standard hours allowed for the actual output were 4,550 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?
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