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 7.8
The following standards for variable manufacturing overhead have been established for a company that makes only one product:
Standard hours per unit of output 7.8 hours
Standard variable overhead rate $12.55 per hour
The following data pertain to operations for the last month:
Actual hours 2,900 hours
Actual total variable overhead cost $31,330
Actual output 200 units
What is the variable overhead efficiency variance for the month?
A - $130 F.
B - $130 U.
C - $4,320 F.
D - $4,320 U.
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