Bondi Corporation Makes Automotive Engines

Essay

Bondi Corporation makes automotive engines.For the most recent month,budgeted production was 1,500 engines.The standard power cost is $3.10 per machine-hour.The company's standards indicate that each engine requires 9.3 machine-hours.Actual production was 1,800 engines.Actual machine-hours were 15,860 machine-hours.Actual power cost totaled $51,593.
Required:
Determine the rate and efficiency variances for the variable overhead item power cost and indicate whether those variances are unfavorable or favorable.Show your work!