Answer the Following Questions Using the Information Below:
Wagga Wagga

question 147

Multiple Choice

Answer the following questions using the information below:
Wagga Wagga Corporation manufactured 30 000 eskies during September.The overhead cost-allocation base is $12.50 per machine-hour.The following variable overhead data pertain to September:
$$\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\\text { Production } & 30000 \text { units } & 24000 \text { units } \\\text { Machine-hours } & 15000 \text { hours } & 10800 \text { hours } \\\text { Variable overhead cost per machine-hour: } & \$ 12.00 & \$ 12.50\end{array}$$
-What is the variable overhead efficiency variance?

• A)$13 125 unfavourable
• B)$18 750 unfavourable
• C)$30 375 unfavourable
• D)$7500 favourable

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