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 -----------

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

Standard hours per unit of output ----------- 2.7 hours

Standard variable overhead rate ------------ $13.05

The following data pertain to operations for the last month:

Actual hours ------------------------------------------------ 2,400 hours

Actual total variable manufacturing overhead cost --- $30,360

Actual output ----------------------------------------------- 600 units

What is the variable overhead efficiency variance for the month?

a.

$9,219 U
b.

$10,179 U
c.

$9,867 U
d.

$648 U

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