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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