Wineman Incorporated makes a single product-an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted (Planned) Overhead: Budgeted variable manufacturing overhead$153,425 Budgeted fixed manufacturing overhead 352,925 Total budgeted manufacturing overhead$506,350 Budgeted production (a) 25,000units Standard hours per unit (b) 1.90machine-hours Budgeted hours (a) × (b) 47,500machine-hours Applying Overhead: Actual production (a) 23,000units Standard hours per unit (b) 1.90machine-hours Standard hours allowed for
the actual production (a) × (b) 43,700machine-hours Actual Overhead and Hours: Actual variable manufacturing overhead$107,000 Actual fixed manufacturing overhead 336,925 Total actual manufacturing overhead$443,925 Actual hours 42,800machine-hours ?The variable overhead efficiency variance is:
A. $2,250 U
B. $2,250 F
C. $2,907 F
D. $2,907 U
Answer: C
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