QUESTION 3

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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QUESTION 3
The following standards for variable manufacturing overhead have been established for a company that makes only one product:
Standard hours per unit of output
1.6 hours
$11.55 per hour
Standard variable overhead rate
The following data pertain to operations for the last month:
Actual hours
4,900 hours
Actual total variable manufacturing overhead cost
Actual output
3,000 units
What is the variable overhead efficiency variance for the month?
O $1,190 F
O $1,680 F
O $1,155 U
O $1,190 U
$58.310
Transcribed Image Text:QUESTION 3 The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 1.6 hours $11.55 per hour Standard variable overhead rate The following data pertain to operations for the last month: Actual hours 4,900 hours Actual total variable manufacturing overhead cost Actual output 3,000 units What is the variable overhead efficiency variance for the month? O $1,190 F O $1,680 F O $1,155 U O $1,190 U $58.310
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