Dowen Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Dowen Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 4,400 machine-hours. Budgeted and actual overhead costs for the month appear below: The company actually worked 4,460 machine-hours during the month. The standard hours allowed for the actual output were 4,310 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?

A) $2,198 favorable
B) $1,695 unfavorable
C) $150 unfavorable
D) $503 favorable