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XYZ Manufacturing uses a standard cost system with overhead applied based on direct-labor hours. The manufacturing budget for the production of 5,000 units for the

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XYZ Manufacturing uses a standard cost system with overhead applied based on direct-labor hours. The manufacturing budget for the production of 5,000 units for the month of June included 10,000 hours of direct labor at $20 per hour, or $200,000. During June, 4,500 units were produced, using 9,600 direct-labor hours, incurring $43,400 of variable overhead, and showing a variable overhead efficiency variance of $3,600 unfavorable. The standard variable overhead rate per direct-labor hour was 1) $5.85 2) $6.00 3) $6.20 4) $0

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