The following information for the past year is available from Gas Company, a company that...
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The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred $ 35,000 Actual fixed overhead cost incurred $ 12,000 Budgeted fixed overhead cost $ 10,000 Actual machine hours 9,000 Standard machine hours allowed for the units manufactured 5,400 Denominator volumemachine hours 6,500 Standard variable overhead rate per machine hour $ 3 The variable factory overhead efficiency variance is: Multiple Choice $10,800 unfavorable. $11,600 unfavorable. $12,300 favorable. $11,700 favorable. $11,200 favorable
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