Use the following information to answer Questions below.
Phillips Fencing considers 6,000 direct labor hours or 200 fences to be its normal monthly capacity. Its standard variable overhead rate is $7 per direct labor hour. During the current month, $44,500 of variable overhead costs were incurred in working 6,200 direct labor hours to complete 215 fences.
-What is the variable overhead efficiency variance?
A) $1,400 U
B) $1,750 U
C) $1,400 F
D) $1,750 F
E) None of the above
Correct Answer:
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