Pearce Company Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:

Standard:

DLH per unit 2.20

Variable overhead per DLH $2.50

Fixed overhead per DLH

Budgeted variable overhead $3.00

(based on 11,990 DLHs)

Actual:
Units produced 4,400

Direct labor hours 8,800

Variable overhead $29,950

Fixed overhead $42,300

Refer to Pearce Company Using the four-variance approach,what is the variable overhead efficiency variance? A)$9,570 F B)$9,570 U C)$2,200 F D)$2,200 U

Question

Pearce Company Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:

Standard:
DLH per unit	2.20
Variable overhead per DLH	$2.50
Fixed overhead per DLH
Budgeted variable overhead	$3.00
(based on 11,990 DLHs)

Actual:
Units produced	4,400
Direct labor hours	8,800
Variable overhead	$29,950
Fixed overhead	$42,300

Refer to Pearce Company Using the four-variance approach,what is the variable overhead efficiency variance? A)$9,570 F B)$9,570 U C)$2,200 F D)$2,200 U

Quizplus · Accepted Answer

The Answer of Pearce Company Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:

Standard:
DLH per unit	2.20
Variable overhead per DLH	$2.50
Fixed overhead per DLH
Budgeted variable overhead	$3.00
(based on 11,990 DLHs)

Actual:
Units produced	4,400
Direct labor hours	8,800
Variable overhead	$29,950
Fixed overhead	$42,300

Refer to Pearce Company Using the four-variance approach,what is the variable overhead efficiency variance? A)$9,570 F B)$9,570 U C)$2,200 F D)$2,200 U

Pearce Company Pearce Company Uses a Standard Cost System for Its Production