Question
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct labor is 2 hours @ $14 per hour and Variable overhead is 2 hours @ $5 per hour. During March the company actually produced and sold 30,000 units and incurred the following costs: Direct laborers worked 55,000 hours at a rate of $15.00 per hour. Total variable manufacturing overhead for the month was $2,83,250. What is the variable overhead efficiency variance for March?
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