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Merle Corporation Applies Manufacturing Overhead to Products on the Basis

Question 65

Multiple Choice

Merle Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 4,000 machine-hours. Budgeted and actual overhead costs for the month appear below: Merle Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 4,000 machine-hours. Budgeted and actual overhead costs for the month appear below: The company actually worked 3,690 machine-hours during the month. The standard hours allowed for the actual output were 3,620 machine-hours for the month. What was the overall variable overhead efficiency variance for the month? A) $721 Unfavorable B) $467 Favorable C) $254 Unfavorable D) $880 Favorable The company actually worked 3,690 machine-hours during the month. The standard hours allowed for the actual output were 3,620 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?


A) $721 Unfavorable
B) $467 Favorable
C) $254 Unfavorable
D) $880 Favorable

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