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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