Bronco Company applies overhead based on direct labor hours. The variable overhead standard is 10 hours at $3.50 per hour. During October, Bronco Company spent $157,600 for variable overhead. 47,440 labor hours were used to produce 4,800 units. What is the variable overhead efficiency variance?

Multiple Choice

• $1,960 favorable

• $1,960 unfavorable

• $10,400 favorable

• $8,440 favorable

Maui Co. has a direct labor standard of 4 hours per unit of output. Each employee has a standard wage rate of $12 per hour. During February, Maui Co. paid $99,800 to employees for 9,160 hours worked. 2,480 units were produced during February. What is the flexible budget amount for direct labor?

Multiple Choice

• $109,920

• $29,760

• $99,800

• $119,040

The production forecast of Sleeping Bears Inc. for the next three months is as follows: July 5,900 units, August 7,600 units, September 8,500 units. Monthly manufacturing overhead is budgeted to be $27,000 plus $6 per unit produced. What is budgeted manufacturing overhead for August?

Multiple Choice

• $72,600

• $78,000

• $27,000

• $45,600