makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.20 hours per unit. The variable overhead rate standard is $9.30 per hour. In January the company produced 4,550 units using 960 direct labor-hours. The actual variable overhead rate was $9.20 per hour. The variable overhead efficiency variance for January is: A: $465 F B: $460 U C: $465 U D: $460 F

Principles of Accounting Volume 2
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Author:OpenStax
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Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 10EB: A manufacturer planned to use $45 of variable overhead per unit produced, but in the most recent...
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20-
Brummer Corporation makes a product whose variable overhead standards are
based on direct labor-hours. The quantity standard is 0.20 hours per unit. The variable
overhead rate standard is $9.30 per hour. In January the company produced 4,550 units
using 960 direct labor-hours. The actual variable overhead rate was $9.20 per hour.
The variable overhead efficiency variance for January is:
A: $465 F
B: $460 U
C: $465 U
D: $460 F
Transcribed Image Text:20- Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.20 hours per unit. The variable overhead rate standard is $9.30 per hour. In January the company produced 4,550 units using 960 direct labor-hours. The actual variable overhead rate was $9.20 per hour. The variable overhead efficiency variance for January is: A: $465 F B: $460 U C: $465 U D: $460 F
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