Tantanka Manufacturing Corporation Uses a Standard Cost System with Machine-Hours

question 92

Multiple Choice

Tantanka Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year: The standard machine-hours allowed for actual output during the year were 7,600. The actual machine-hours incurred were 7,500.
What was Tantanka's variable overhead efficiency variance?

• A) $5,400 Favorable
• B) $5,472 Unfavorable
• C) $21,600 Unfavorable
• D) $51,000 Unfavorable

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