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The following standards for variable manufacturing overhead have been established for a company that makes...

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Accounting

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

Standard hours per unit of output 6.0 hours
Standard variable overhead rate $ 12.40 per hour

The following data pertain to operations for the last month:

Actual hours 2,600 hours
Actual total variable manufacturing overhead cost $ 32,870
Actual output 250 units

What is the variable overhead efficiency variance for the month?

Multiple Choice

  • $14,270 U

  • $13,640 U

  • $630 U

  • $18,600 F

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