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 3,600 machine-hours. Budgeted and actual overhead costs for the month appear below: Original Budget Based on 3,600 Machine-Hours-Actual CostsVariable overhead costs: Supplies$11,160 $11,830 Indirect labor 26,280 27,970 Fixed overhead costs: Supervision 19,700 19,340 Utilities 5,900 5,770 Factory depreciation 6,900 7,210 Total overhead cost$69,940 $72,120 ?The company actually worked 3,900 machine-hours during the month. The standard hours allowed for the actual output were 3,890 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?
A. $656 Favorable
B. $104 Unfavorable
C. $760 Favorable
D. $180 Favorable
Answer: B
Business
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