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Trenton Manufacturing Co. manufactures one product, with the following standard costs: Direct Materials 20 yards per unit @ $6 per yard Direct Labor 25 hours
Trenton Manufacturing Co. manufactures one product, with the following standard costs: Direct Materials 20 yards per unit @ $6 per yard Direct Labor 25 hours per unit @ $8 per hour Variable Overhead 25 hours per unit @ $3 per hour Fixed Overhead 25 hours per unit @ $1 per hour Standard have been computed on a master budget activity level of 14,400 DL hours per month. Actual activity for the past month was as follows: Direct materials purchased Direct materials used Direct labor cost Variable overhead cost Fixed overhead cost Production 9,500 yards @ $6.15 per yard 9,200 yards $104,320 for 12,800 hours $ 35,770 $ 15,875 500 units Which of the following accurately reports the VOH efficiency variance? $2,630 Favorable $900 Unfavorable $2,630 Unfavorable $900 Favorable
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