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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