Problem:
Company applies manufacturing overhead to products on the basis of standard machine hours. For most recent month, company based its budget on 4,400 machine hours. Budgeted and actual overhead costs for the month are:
Variable OH: Budgeted Actual
Supplies 21,500 20,720
Indirect Labor 28,160 27,480
Fixed OH:
Supervision 17,900 17,590
Utilities 5,900 6,160
Factory Depreciation 8,200 8,400
Total Overhead Costs 81,720 80,350
The company actually worked 4,460 machine hours during the month. The standard hours allowed for actual output were 4,310 machine hours for the month. What is the overall variable overhead efficiency variance for the month?