A manufacturing company that has only one product has established the following standards for its variable manufacturing
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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 standards on direct labor-hours.
Standard hours per unit of output4.50DLHsStandard variable overhead rate$11.52per DLH
The following data pertain to operations for the last month:
Actual direct labor-hours8,900DLHsActual total variable manufacturing overhead cost$95,920Actual output1,800units
What is the variable overhead efficiency variance for the month?
Multiple Choice
- $9,216 U
- $7,033 F
- $3,452 U
- $7,033 U
Expert Answer:
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