The following standards for variable manufacturing overhead have been establishe
ID: 2432672 • Letter: T
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 ----------- 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?
$9,219U
$10,179U
$9,867U
$648U
a.$9,219U
b.$10,179U
c.$9,867U
d.$648U
Explanation / Answer
Variable overhead Efficiency variance (Actual hours - standard hrs allowed)* standard rate (2,400 - 600*2.7)*13.05 10179 U answer answer option B