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Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for
Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for May when Buckingham produced 4,500 units:
Standard:
DLH (Direct Labor Hour) per unit 2.50
Variable overhead per DLH $1.75
Fixed overhead per DLH $3.10
Budgeted variable overhead $21,875
Budgeted fixed overhead $38,750
Actual:
Direct labor hours 10,000
Variable overhead $26,250
Fixed overhead $38,000
Refer to Buckingham Companys data. What is the variable overhead efficiency variance?
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