Mongar Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: The original budget was based on 4,200 machine-hours. The company actually worked 4,350 machine-hours during the month and the standard hours allowed for the actual output were 4,190 machine-hours. What was the overall variable overhead efficiency variance for the month?

A) $130 Unfavorable
B) $950 Favorable
C) $1,310 Favorable
D) $1,440 Unfavorable