A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. 3.60 DLHS $10.95 per DLH Standard hours per unit of output Standard variable overhead rate. The following data pertain to operations for the last month: Actual direct labor-hours Actual total variable manufacturing overhead cost Actual output What is the variable overhead efficiency variance for the month? Multiple Choice O O O $6,789 U $7,213 F $3,592 U $7,213 U 8,900 DLHS $ 95,820 2,300 units

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.
Standard hours per unit of output
Standard variable overhead rate
3.60 DLHS
$10.95 per DLH
The following data pertain to operations for the last month:
Actual direct labor-hours
Actual total variable manufacturing overhead cost
Actual output
What is the variable overhead efficiency variance for the month?
Multiple Choice
$6,789 U
$7,213 F
$3,592 U
$7,213 U
8,900 DLHS
$ 95,820
2,300 units
Transcribed Image Text:A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. Standard hours per unit of output Standard variable overhead rate 3.60 DLHS $10.95 per DLH The following data pertain to operations for the last month: Actual direct labor-hours Actual total variable manufacturing overhead cost Actual output What is the variable overhead efficiency variance for the month? Multiple Choice $6,789 U $7,213 F $3,592 U $7,213 U 8,900 DLHS $ 95,820 2,300 units
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