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The following information is available from the Terry Company: Actual total factory overhead cost incurred $ 25,000 Actual fixed overhead cost incurred $ 10,400 Budgeted

The following information is available from the Terry Company:

Actual total factory overhead cost incurred $ 25,000
Actual fixed overhead cost incurred $ 10,400
Budgeted fixed overhead expenses $ 11,000
Actual direct labor hours (DLH) worked 4,400
Standard DLHs for this periods production (output) 4,000
Standard variable overhead rate per DLH $ 3.00
Standard fixed overhead rate per DLH $ 2.50

What was the variable overhead efficiency variance for the period, to the nearest whole dollar?

Multiple Choice

  • $600 favorable.

  • $800 unfavorable.

  • $1,200 unfavorable.

  • $1,400 unfavorable.

  • $2,000 unfavorable.

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