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  • Essay
  • September 13th, 2013

Pillow Company manufactures pillows

Heather’s
Pillow Company manufactures pillows. The 20X5 operating budget is based on
production of 20,000 pillows with 0.5 machine-hour
allowed per pillow. Variable manufacturing overhead is anticipated to be
$220,000.

Actual
production for 20X5 was 18,000 pillows using 9,500 machine-hours. Actual variable costs were $20 per machine-hour.

Required:

Calculate
the variable overhead spending and efficiency variances.

 

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