Question: The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 7.2
| The following standards for variable manufacturing overhead have been established for a company that makes only one product: |
| Standard hours per unit of output | 7.2 | hours |
| Standard variable overhead rate | $13.60 | per hour |
| The following data pertain to operations for the last month: |
| Actual hours | 2,750 | hours |
| Actual total variable manufacturing overhead cost | $38,090 | |
| Actual output | 250 | units |
| What is the variable overhead efficiency variance for the month? |
A. $13,610 U
B. $12,920 U
C. $690 F
D. $24,480 F
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