Trilite Windows Manufactures Windows

question 254

Essay

Trilite Windows manufactures windows. The current year operating budget is based on production of 56,000 windows with 1.0 machine hours allowed per window. Variable manufacturing overhead is anticipated to be $896,000.
Actual production for was 58,000 windows using 60,000 machine hours. Actual variable costs were $15 per machine hour.
Required:
Calculate the variable overhead spending and efficiency variances.

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Definitions:

Action

The process or act of doing something towards achieving an objective or solving a problem, often involving physical or mental effort.

Careful Decision Making

The process of making choices by considering various possible outcomes, implications, and carefully evaluating alternatives.

Controlled Processing

The mental activity that requires deliberate, conscious attention and effort, as opposed to automatic processes that require minimal awareness.

Social Loafing

The tendency of individuals to exert less effort on a task when working in a group compared to when working alone.