Question: TB MC Qu. 9-112 The following standards for variable ... The following standards for variable manufacturing overhead have been established for a company that makes

TB MC Qu. 9-112 The following standards for variable ...

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output 7.4 hours
Standard variable overhead rate $ 13.80 per hour

The following data pertain to operations for the last month:

Actual hours 2,775 hours
Actual total variable manufacturing overhead cost $ 38,995
Actual output 200 units

What is the variable overhead efficiency variance for the month?

  • $18,571 U

  • $17,871 U

  • $700 U

  • $20,424 F

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