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Question - Messenger, Inc. has a standard variable overhead rate of $5 per machine hour, with each completed unit expected to take 4 machine hours to produce. A review of the company's accounting records found the following:
Actual production: 21,300 units
Variable-overhead efficiency variance: $10,800U
Variable-overhead spending variance: $22,800F
Required - What was Messenger's actual variable overhead during the period?
a. $459,600
b. $414,000.
c. None of the answers is correct.
d. $392,400.
e. $438,000.
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