The Maxit Corporation Has a Standard Costing System in Which

Multiple Choice

The Maxit 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: $11,310Actual machine-hours worked: 1,600 hoursVariable overhead rate variance: $1,710 UnfavorableTotal variable overhead spending variance: $2,310 UnfavorableThe variable overhead efficiency variance for July is:

A) $600 Unfavorable
B) $540 Unfavorable
C) $540 Favorable
D) $600 Favorable