Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products. The company records materials price variances at the time of purchase.
The variable manufacturing overhead efficiency variance is
A) $1,000 favorable.
B) $2,000 favorable.
C) $1,000 unfavorable.
D) $3,000 unfavorable.

Question

Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products.  The company records materials price variances at the time of purchase.
The variable manufacturing overhead efficiency variance is
A) $1,000 favorable. 
B) $2,000 favorable. 
C) $1,000 unfavorable. 
D) $3,000 unfavorable.

Quizplus · Accepted Answer

The Answer of Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products.  The company records materials price variances at the time of purchase.
The variable manufacturing overhead efficiency variance is
A) $1,000 favorable. 
B) $2,000 favorable. 
C) $1,000 unfavorable. 
D) $3,000 unfavorable.

Biscuit Company Has Developed the Following Standards for One of Its