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 4100 machine-hours. Budgeted and actual overhead costs for the month appear below: Original Budget Based on 4100 Machine-Hours-Actual CostsVariable overhead costs:      Supplies$11,510? $12,330? Indirect labor 33,180?  35,300? Fixed overhead costs:      Supervision 20,200?  19,840? Utilities 6400?  6320? Factory depreciation 7400?  7710? Total overhead cost$78,690? $81,500? The company actually worked 4220 machine-hours during the month. The standard hours allowed for the actual output were 4210 machine-hours for the month. What was the overall variable overhead efficiency

variance for the month?

A. $610 Favorable
B. $717 Favorable
C. $109 Unfavorable
D. $230 Favorable


Answer: C

Business

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What will be an ideal response?

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