Kizspy | Question: 27 (Choose 1 answer)
Keppler Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's cost formula for variable overhead cost is USD4.90 per machine-hour. The actual variable overhead cost for the month was USD25, 160. The original budget for the month was based on 5,000 machine-hours. The company actually worked 5,320 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,220 machine-hours. What was the variable overhead efficiency variance for the month?
A. USD1,078 unfavorable
B. USD490 unfavorable
C. USD418 favorable
D. USD908 favorable
E. None of these
