Venus Company applies overhead based on direct labor hours. The variable overhead standard is 12 hours at $3 per hour. During October, Venus Company spent $160,924 for variable overhead, and 47,460 labor hours were used to produce 4,610 units. What is the variable overhead efficiency variance? Multiple Choice $25,938 favorable $23,978 favorable $2,060 unfavorable $23,978 unfavorable
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Venus Company applies
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$25,938 favorable
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$23,978 favorable
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$2,060 unfavorable
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$23,978 unfavorable
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