The Maxit Corporation Has a Standard Costing System in Which

question 156

Multiple Choice

The Maxit 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: $26,140Actual machine-hours worked: 3,200 hoursVariable overhead rate variance: $5,820 UnfavorableTotal variable overhead spending variance: $8,140 UnfavorableThe variable overhead efficiency variance for July is:

• A) $2,320 Unfavorable
• B) $13,960 Unfavorable
• C) $13,960 Favorable
• D) $2,320 Favorable

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