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 $9.70 per hour. In January the company produced 4,950 units using 1,020 direct labor-hours. The actual variable overhead rate was $9.60 per hour.

The variable overhead efficiency variance for January is:

Multiple Choice

  • $288 F

  • $288 U

  • $291 F

  • $291 U

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