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Melrose Manufacturing produces gourmet blackberry preserves. Melrose based its current year budget ...

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Melrose Manufacturing produces gourmet blackberry preserves. Melrose based its current year budget ...

Melrose Manufacturing produces gourmet blackberry preserves. Melrose based its current year budget on a production level of 540,000 jars of preserves using 1/2 hour direct labor time for each jar (which includes hand-sorting and trimming the berries). Total budgeted variable overhead for the year was $1,242,000. During the year, Melrose used 280,000 direct labor hours to produce 550,000 jars of blackberry preserves. Actual variable overhead for the year was $1,246,000. What is Melrose's variable overhead efficiency variance?

▸ $4,000 favorable

▸ $23,000 favorable

▸ $4,000 unfavorable

▸ $23,000 unfavorable

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Managerial Accounting

Edition: 4^th

Author: Davis

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Thanks for your help!!

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