Question: A company uses a standard cost system in which variable manufacturing overhead (VMOH) is applied to products on the basis of Direct Labor Hours (DLHs).

A company uses a standard cost system in which variable manufacturing overhead (VMOH) is applied to products on the basis of Direct Labor Hours (DLHs). Their product standard calls for 2 DLHs per unit. For the most recent period, the company reported the following data. Actual Units Produced:232 units Actual Direct Labor Hours: 450 hours Actual VMOH expense:$18000 MOH Rate Variance:$1800 favorable Q. What was the VMOH efficiency variance?

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