Pearle Corporation makes automotive engines. For the most recent month, budgeted production was 3,300 engines. The budgeted
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Pearle Corporation makes automotive engines. For the most recent month, budgeted production was 3,300 engines. The budgeted power cost is $9.20 per machine-hour. The company’s standards indicate that each engine requires 2.1 machine-hours. Actual production was 3,400 engines. Actual machine-hours were 7,160 machine-hours. Actual power cost totaled $61,815. Determine the total variance, the spending variance, and the efficiency variance for the variable overhead item power cost that would appear on the company’s variable overhead performance report. Show your work!
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