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Neptune Inc. uses a standard cost system and has the following information for the most recent month, April: Actual direct labor hours (DLHs) worked 17,000
Neptune Inc. uses a standard cost system and has the following information for the most recent month, April:
Actual direct labor hours (DLHs) worked | 17,000 |
Standard direct labor hours allowed for good output produced this period | 18,000 |
Actual total factory overhead costs incurred | $45,400 |
Budgeted fixed factory overhead costs | $10,800 |
Denominator activity level, in direct labor hours (DLHs) | 15,000 |
Total factory overhead application rate per standard direct labor hour | $2.70 |
The variable factory overhead efficiency variance for Neptune, Inc. in April was:
$940 unfavorable. | ||
$1,040 favorable. | ||
$1,980 favorable. | ||
$2,160 favorable. | ||
$3,200 favorable. |
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