Evans Inc. manufactures pillows. The 2015 operating budget is based on production of 25,000 pillows with 0.75

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Evans Inc. manufactures pillows. The 2015 operating budget is based on production of 25,000 pillows with 0.75 machine-hour allowed per pillow. Budgeted variable overhead per hour was $25.

Actual production for 2015 was 27,000 pillows using 19,050 machine-hours. Actual variable costs were $23 per machine-hour.

Required:

Calculate the variable overhead spending and efficiency variances.

Related Book For answer-question

Cornerstones of Managerial Accounting

ISBN: 978-0324660135

3rd Edition

Authors: Mowen, Hansen, Heitger

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Posted Date: Aug 03, 2018 01:20 AM

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Evans Inc. manufactures pillows. The 2015 operating budget is based on production of 25,000 pillows with 0.75

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Computation of the variable overhead spending and ... View the full answer

Cornerstones of Managerial Accounting

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