Answer:
Variable overhead efficiency variance= $14,400 favorable
Explanation:
Giving the following information:
Budgeted Actual
Production 30,000 units 24,000 units
Machine-hours 15,000 hours 10,800 hours
Variable overhead cost per machine-hour: $12.00 $11.25
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (12,000 - 10,800)*12
Variable overhead efficiency variance= $14,400 favorable