Essay
Kelly's Pillow Company manufactures pillows. The 2011 operating budget is based on production of 40,000 pillows with 0.5 machine-hour allowed per pillow. Variable manufacturing overhead is anticipated to be $440,000.
Actual production for 2011 was 36,000 pillows using 19,000 machine-hours. Actual variable costs were $20 per machine-hour.
Required:
Calculate the variable overhead spending and efficiency variances.
Correct Answer:
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Spending variance = ($22 - $2...View Answer
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Correct Answer:
Verified
Spending variance = ($22 - $2...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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