Question: Novelli Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 1.8 hours per unit. The variable overhead
Novelli Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 1.8 hours per unit. The variable overhead rate standard is $13.00 per hour. In September, the company produced 1,250 units using 2,240 direct labor-hours. The actual variable overhead rate was $14.70 per hour. The variable overhead efficiency variance for September is:
a. $147 U
b. $130 U
c. $147 F
d. $130 F
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