10

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.

Standard hours per unit of output		4.10	DLHs
Standard variable overhead rate	$	11.45	per DLH

The following data pertain to operations for the last month:

Actual direct labor-hours		8,500	DLHs
Actual total variable manufacturing overhead cost	$	95,870
Actual output		2,000	units

What is the variable overhead efficiency variance for the month?

Multiple Choice

• $3,435 U

• $7,133 F

• $2,652 U

• $7,133 U