Question
Corie Engineering makes a product with the following standards for variable manufacturing overhead: Standard Hours Standard Rate Variable manufacturing overhead 0.4 direct labor hours $9
Corie Engineering makes a product with the following standards for variable manufacturing overhead:
Standard Hours | Standard Rate | |
Variable manufacturing overhead | 0.4 direct labor hours | $9 per hour |
Variable manufacturing overhead is applied to the product on the basis of standard direct labor-hours.
Budgeted production in the master budget was 2,850 units for March.
The following events occurred during March: 2,750 units of the product were actually produced during March. 1,080 actual direct labor hours were worked during March. Actual variable manufacturing overhead rate during March was $8.65 per direct labor hour.
Variable manufacturing overhead efficiency variance for March is:
$285.00 favorable
$180.00 favorable
$173.00 favorable
$540.00 favorable
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