Lance Production Company has the following information:
$$\begin{array} { l r }
\text { Standard fixed factory overhead rates per direct labor-hour } & \$ 1.50 \
\text { Standard variable factory overhead rates per direct labor-hour } & \$ 5.00 \
\text { Actual number of units produced } & 6,000 \text { units } \
\text { Actual factory overhead costs (includes } \$ 70,000 \text { fixed) } & \$ 78,000 \
\text { Actual direct labor hours } & 6,000 \text { hours }
\end{array}$$ Standard factory overhead rates are based on a normal monthly volume of 5,000 units (1 standard direct labor-hour per unit).
What is Lance's variable overhead efficiency variance?

Question

Lance Production Company has the following information:
$$\begin{array} { l r } 
\text { Standard fixed factory overhead rates per direct labor-hour } & \$ 1.50 \
\text { Standard variable factory overhead rates per direct labor-hour } & \$ 5.00 \
\text { Actual number of units produced } & 6,000 \text { units } \
\text { Actual factory overhead costs (includes } \$ 70,000 \text { fixed) } & \$ 78,000 \
\text { Actual direct labor hours } & 6,000 \text { hours }
\end{array}$$ Standard factory overhead rates are based on a normal monthly volume of 5,000 units (1 standard direct labor-hour per unit).
What is Lance's variable overhead efficiency variance?

Quizplus · Accepted Answer

The Answer of Lance Production Company has the following information:
$$\begin{array} { l r } 
\text { Standard fixed factory overhead rates per direct labor-hour } & \$ 1.50 \
\text { Standard variable factory overhead rates per direct labor-hour } & \$ 5.00 \
\text { Actual number of units produced } & 6,000 \text { units } \
\text { Actual factory overhead costs (includes } \$ 70,000 \text { fixed) } & \$ 78,000 \
\text { Actual direct labor hours } & 6,000 \text { hours }
\end{array}$$ Standard factory overhead rates are based on a normal monthly volume of 5,000 units (1 standard direct labor-hour per unit).
What is Lance's variable overhead efficiency variance?

Lance Production Company Has the Following Information Standard Factory Overhead Rates Are Based on a Normal Monthly