Question

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What was the variable overhead efficiency/quantity variance for the month? Group of answer choices

Answer 1

Answer:

$17,871 U

Explanation:

Note The missing word have been attached as picture below

Variable overhead efficiency variance = (Standard hour - Actual hour) * Standard rate

Variable overhead efficiency variance = (1,480 hours - 2,775 hours) * $13.80

Variable overhead efficiency variance = 1,295 hours * $13.80

Variable overhead efficiency variance = $17,871 U