Lance Production Company has the following information:
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?
A) $ 6,000 (
B) $ 4,000 (
C) $-0-
D) $3,000 (

Question

Lance Production Company has the following information:
 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?
A) $ 6,000 (
B) $ 4,000 (
C) $-0- 
D) $3,000 (

Quizplus · Accepted Answer

(6,000 - 6,000) x $5 = $ 0

Lance Production Company Has the Following Information