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Bonnie Company applies overhead based on machine hours. The variable overhead standard is 15 hours...

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Question

Accounting

Bonnie Company applies overhead based on machine hours. The variable overhead standard is 15 hours at $10 per hour. During March, Bonnie spent $283,300 for variable overhead, and 12,950 machine hours were used to produce 350 units. What is the variable overhead efficiency variance?

Multiple Choice

$77,000 unfavorable

$153,800 unfavorable

$230,800 unfavorable

$77,000 favorable

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