The Maxwell Corporation Has a Standard Costing System in Which

Multiple Choice

The Maxwell Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July:

• Actual variable manufacturing overhead cost incurred: $22,620
• Actual machine-hours worked: 1,600 hours
• Variable overhead rate variance: $3,420 Unfavorable
• Total variable overhead spending variance: $4,620 Unfavorable

-The variable overhead efficiency variance for July is:

A) $8,040 Unfavorable
B) $8,040 Favorable
C) $1,200 Unfavorable
D) $1,200 Favorable