Cady Machine Shop used 15,000 machine hours during January. It takes 0.90 machine-hours to produce one unit; 15,000 units were produced during the month. Budgeted production included 12,000 units, using 10,800 machine hours. Budgeted variable manufacturing overhead costs per machine-hour is $22.50. What is the variable overhead efficiency variance for Cady?

A) $67,500 unfavorable 

B) $67,500 favorable 

C) $37,000 favorable 

D) $33,750 favorable 

1. E) $33,750 unfavorable
   
   

Answer rating: 100% (QA)

budgeted production 10800 machine hours used to produce 120... View the full answer