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41 Compost Company makes a single product and uses standard costing. Variable manufacturing overhead is assigned to production on the basis of direct labour hours.

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Compost Company makes a single product and uses standard costing. Variable manufacturing overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: Labour rate variance $7,000 F Labour efficiency variance $12,000 F Variable manufacturing overhead efficiency $4,000 F variance Number of units produced 10,000 Standard labour rate per direct labour hour (DLhr) $12 Standard variable manufacturing overhead rate per $4 DLhr Actual labour hours used 14,000 Actual variable manufacturing overhead costs $58,290 What was the total standard cost for variable manufacturing overhead for May? $50,000 $56,000 $60,000 $40,000

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