Question: Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.20 hours per unit. The variable overhead
Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.20 hours per unit. The variable overhead rate standard is $9.50 per hour. In January the company produced 4,750 units using 980 direct labor-hours. The actual variable overhead rate was $9.40 per hour.
The variable overhead efficiency variance for January is:
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