Comfort Company Manufactures Pillows

question 66

Essay

Comfort Company manufactures pillows. The 2015 operating budget is based on production of 25,000 pillows with 0.75 machine-hour allowed per pillow. Budgeted variable overhead per hour was $25.
Actual production for 2015 was 27,000 pillows using 19,050 machine-hours. Actual variable costs were $23 per machine-hour.
Required:
Calculate the variable overhead spending and efficiency variances.

---

Definitions:

Asexual Reproduction

The process by which an organism creates a genetically identical copy of itself without the involvement of another organism.

Choanoflagellates

A group of free-living unicellular and colonial flagellate eukaryotes considered to be the closest living relatives of the animals.

Collar Cells

Also known as choanocytes, are flagellated cells that line the interior of asconoid sponges and are used for feeding by generating water flow and filtering food particles.

Amebocytes

Cells found in the bloodstream of invertebrates that move like amoebas, involved in various functions including distributing nutrients and forming immune responses.