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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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