The Selection is a local casual clothing shop that makes a variety of t-shirt styles. Below...

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The Selection is a local casual clothing shop that makes a variety of t-shirt styles. Below is some actual vs. budget information for The Selection's t-shirts for the month of May. Assume no beginning/ending inventories for simplicity. The cost-allocation base for both variable and fixed overhead is direct labor-hours. Data for the Month of May Static Actual Budget # T-shirts made and sold 5,200 6,250 Selling price per t-shirt $18 $17 Yards of fabric per t-shirt 1.1 Cost per yard of fabric $2.81 $2.66 Time in hours to sew one t-shirt 0.25 0.2 Cost of direct labor (per hour) $14 $15 Variable overhead costs $3,600 $3,100 (utilities, sewing machine maintenance, etc.) 0.25 0.2 Time in hours to sew one t-shirt $14 $15 Cost of direct labor (per hour) $3,600 $3,100 Variable overhead costs (utilities, sewing machine maintenance, etc.) Fixed overhead costs $6,000 $5,800 (store rent, insurance, etc.) What is the variable overhead efficiency variance? O $644 F O $644 U O $728 U O $728 F The Selection is a local casual clothing shop that makes a variety of t-shirt styles. Below is some actual vs. budget information for The Selection's t-shirts for the month of May. Assume no beginning/ending inventories for simplicity. The cost-allocation base for both variable and fixed overhead is direct labor-hours. Data for the Month of May Static Actual Budget # T-shirts made and sold 5,200 6,250 Selling price per t-shirt $18 $17 Yards of fabric per t-shirt 1.1 Cost per yard of fabric $2.81 $2.66 Time in hours to sew one t-shirt 0.25 0.2 Cost of direct labor (per hour) $14 $15 Variable overhead costs $3,600 $3,100 (utilities, sewing machine maintenance, etc.) 0.25 0.2 Time in hours to sew one t-shirt $14 $15 Cost of direct labor (per hour) $3,600 $3,100 Variable overhead costs (utilities, sewing machine maintenance, etc.) Fixed overhead costs $6,000 $5,800 (store rent, insurance, etc.) What is the variable overhead efficiency variance? O $644 F O $644 U O $728 U O $728 F

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