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What is the variable overhead efficiency variance for cady

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Question - 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 favourable

b. $37,000 favourable

c. $33,750 unfavourable

d. $67,500 unfavourable

e. $33,750 favourable

Reference no: EM132091474

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