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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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