The variable overhead efficiency variance

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Reference no: EM131217482

The Maxwell Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July:

• Actual variable manufacturing overhead cost incurred: $25,700

• Actual machine-hours worked: 3,000 hours

• Variable overhead rate variance: $5,520 Unfavorable

• Total variable overhead spending variance: $7,700 Unfavorable

The variable overhead efficiency variance for July is:

$13,220 Unfavorable

$13,220 Favorable

$2,180 Unfavorable

$2,180 Favorable

Reference no: EM131217482

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