Wadding Corporation Applies Manufacturing Overhead to Products on the Basis

question 325

Multiple Choice

Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours.For the most recent month, the company based its budget on 3,600 machine-hours.Budgeted and actual overhead costs for the month appear below: The company actually worked 3,900 machine-hours during the month.The standard hours allowed for the actual output were 3,890 machine-hours for the month.What was the overall variable overhead efficiency variance for the month?

• A)$760 Favorable
• B)$104 Unfavorable
• C)$180 Favorable
• D)$656 Favorable

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Definitions:

Liabilities

Financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits.

Assets

Resources owned or controlled by an entity that are expected to produce economic value.

Balance Sheet

A Balance Sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insight into its financial condition.

Service Revenue

Service revenue is the income a company generates from providing services, as opposed to selling physical goods.