The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 8.0 hours; Standard variable overhead rate $14.40 per hour. The following data pertain to operations for the last month: Actual hours 2,850 hours; Actual total variable manufacturing overhead cost $41,770; Actual output 200 units. What is the variable overhead efficiency variance for the month? A. $18,730 U B. $18,000 U C. $730 F D. $23,040 F
The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 8.0 hours; Standard variable overhead rate $14.40 per hour. The following data pertain to operations for the last month: Actual hours 2,850 hours; Actual total variable manufacturing overhead cost $41,770; Actual output 200 units. What is the variable overhead efficiency variance for the month? A. $18,730 U B. $18,000 U C. $730 F D. $23,040 F
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...
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Transcribed Image Text:The following standards for variable manufacturing overhead have been
established for a company that makes only one product: Standard
hours per unit of output 8.0 hours; Standard variable overhead rate
$14.40 per hour. The following data pertain to operations for the last
month: Actual hours 2,850 hours; Actual total variable manufacturing
overhead cost $41,770; Actual output 200 units. What is the variable
overhead efficiency variance for the month?
A. $18,730 U
B. $18,000 U
C. $730 F
D. $23,040 F
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