Accounting

Designer Desks (DD) provided the following information: Budgeted Variable Manufacturing Overhead (VOH) $54,000 Budgeted Fixed Manufacturing Overhead (FOH) $162,000 Budgeted Production 18,000 units Budgeted Direct Labor Hours (DLH) 27,000 hours Budgeted DLH per Unit 1.5 DLH Standard: VOH 1.5 DLH @ $2 per Hour $3 per unit Standard: FOH 1.5 DLH @ $6 per Hour $9 per unit Actual VOH $68,250 Actual FOH $148,000 Actual Production 20,000 units Actual DLH 32,500 Based on the above information and assuming that DLH is a useful predictor of VOH, what is DD's variable overhead efficiency variance? O $5,000 Unfavorable O $5,000 Favorable O $3,250 Unfavorable O $3,250 Favorable