Question: Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.10 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 0.10 hours per unit. The variable overhead rate standard is $9.60 per hour. In January the company produced 7,500 units using 810 direct labor-hours. The actual variable overhead rate was $9.50 per hour.

The variable overhead efficiency variance for January is:

Multiple Choice

  • $570 U

  • $570 F

  • $576 U

  • $576 F

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