Question for both 1 and 2: What is the variable overhead efficiency variance for July?

Options for 1: a) $764 Favourable b) $764 Unfavourable c) $840 Favourable d) $840 Unfavourable

Options for 2: a) $380 Favourable b) $380 Unfavourable c) $399 Favourable d) $399 Unfavourable

Bulluck Corporation makes a product with the following standard costs Standard Quantity or Standard Price or Hours Direct materials Direct labor Variable overhead grams 0.7 hours 0.7 hours Rate $ 1.00 per gram $11.00 per hour 2.00 per hour The company reported the following results concerning this product in July Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate Actual variable overhead rate 3,000 units 11,370 grams 1,910 hours 12,100 grams $ 1.20 per grarm $ 11.40 per hourr $ 2.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased 2 Bulluck Corporation makes a product with the following standard costs Standard Quantity or Standard Price or Direct materials Direct labor Variable overhead Hours 3.5 grams 0.7 hours 0.7 hours Rate $1.00 per gram $11.00 per hour $ 2.00 per hour The company reported the following results concerning this product in Julyy Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate Actual variable overhead rate 3,000 units 11,370 grams 1,910 hours 12,100 grams $1.20 per gram $ 11.40 per hour $2.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased