Machain Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Machain Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's standard variable manufacturing overhead rate is $2.90 per machine-hour. The actual variable manufacturing overhead cost for the month was $15,270. The original budget for the month was based on 5,000 machine-hours. The company actually worked 5,090 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,200 machine-hours. What was the variable overhead efficiency variance for the month?

A) $580 Unfavorable
B) $190 Unfavorable
C) $509 Unfavorable
D) $319 Favorable