Question
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
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 | 4.40 | DLHs |
|---|---|---|
| Standard variable overhead rate | $ 11.55 | per DLH |
The following data pertain to operations for the last month:
| Actual direct labor-hours | 8,800 | DLHs |
|---|---|---|
| Actual total variable manufacturing overhead cost | $ 95,910 | |
| Actual output | 1,900 | units |
What is the variable overhead efficiency variance for the month?
Multiple Choice
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Financial and Managerial Accounting Information for Decisions
Authors: John Wild, Ken Shaw, Barbara Chiappetta
5th edition
978-1259317552, 1259317552, 978-0078025600, 78025605, 978-1259335013, 1259335011, 978-1259347641
