The Haney Corporation has a standard costing system. Variable manufacturing overhead is applied on the basis of direct labor-hours. The following data are available for January:Actual variable manufacturing overhead: $25,500Actual direct labor-hours worked: 5,800Variable overhead rate variance: $600 FavorableVariable overhead efficiency variance: $2,475 UnfavorableThe standard hours allowed for January production is:
A) 5,975 hours
B) 5,800 hours
C) 5,425 hours
D) 5,250 hours

Question

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The Answer of The Haney Corporation has a standard costing system. Variable manufacturing overhead is applied on the basis of direct labor-hours. The following data are available for January:Actual variable manufacturing overhead: $25,500Actual direct labor-hours worked: 5,800Variable overhead rate variance: $600 FavorableVariable overhead efficiency variance: $2,475 UnfavorableThe standard hours allowed for January production is:
A) 5,975 hours
B) 5,800 hours
C) 5,425 hours
D) 5,250 hours

The Haney Corporation Has a Standard Costing System