Tantanka Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year: Variable FixedTotal budgeted overhead (at denominator level of activity)$432,000 $684,000Total applied overhead$410,400 $649,800Total actual overhead$456,000 $655,500The standard machine-hours allowed for actual output during the year were 7,600. The actual machine-hours incurred were 7,500.What was Tantanka's variable overhead efficiency variance?

A. $21,600 Unfavorable
B. $51,000 Unfavorable
C. $5,472 Unfavorable
D. $5,400 Favorable


Answer: D

Business

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