3 (14 marks): Part A (6 marks) A Company allocates manufacturing overhead on the basis of machine hours. The budgeted an actual data for 2013 are as follows: Number of units Machine hours per unit Variable manufacturing overhead Static-Budget 20,000 units Actual 18,000 units 1.00 hours $220,000 Actual machine hours Actual Variable cost per machine hour Required: 19,000 machine hours $10 1. Calculate the variable manufacturing overhead spending variances. 2. Calculate the variable manufacturing overhead efficiency variance Answer: 1. 2