Pleiss Corporation applies manufacturing overhead to products on the basis of standard machine-hours.

The company's standard variable manufacturing overhead rate is $2.40 per machine-hour.

The actual variable manufacturing overhead cost for the month was $5,240.

The original budget for the month was based on 2,100 machine-hours.

The company actually worked 2,270 machine-hours during the month.

The standard hours allowed for the actual output of the month totaled 2,280 machine-hours.

What was the variable overhead efficiency variance for the month

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andromache andromache · Answer 1 · 2019-12-25T12:23:02+01:00

Answer:

$24 favorable

Explanation:

The formula to compute the variable overhead efficiency variance is shown below:

= (Actual machine hours - standard machine hours) × variable overhead per hour

where,

Actual machine hours is 2,270 machine hours

The standard machine hours is 2,280 hours and the standard variable manufacturing overhead rate is $2.40

Now put these values to the above formula

So, the value would equal to

= (2,270 hours - 2,280 hours) × $2.40

= $24 favorable