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 output3.40DLHsStandard variable overhead rate$10.75per DLH
The following data pertain to operations for the last month:
Actual direct labor-hours9,200DLHsActual total variable manufacturing overhead cost$95,800Actual output2,500units
What is the variable overhead efficiency variance for the month?
Multiple Choice
- $7,525 U
- $7,433 F
- $3,952 U
- $7,433 U
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