Epplin Company
The following information is provided for Epplin Company for the month of September:
$\begin{array}{ll}
\underline{\text { Actual }} &\underline{ \text { Standard }} \
\text { 1,800 }\text { units } &5 \text { DLHs per unit @ } \$ 10.00 \text { per DLH } \
8,900 \text { DLHs @ } \$ 10.50 \text { per DLH } & \text { VOH rate per DLH } \$ .75 \
\text { Variable OH } \$ 6,400 & \text { FOH rate per DLH } \$ 1.90 \
\text { Fixed OH } \$ 17,500 &\text { Budgeted FOH \$16,910 }
\end{array}$

Refer to Epplin Company.What is the efficiency variance?
A)$4,450 F
B)$4,450 U
C)$1,000 F
D)$1,000 U

Question

Epplin Company
The following information is provided for Epplin Company for the month of September:
$\begin{array}{ll}
\underline{\text { Actual }} &\underline{ \text { Standard }} \
\text { 1,800 }\text { units } &5 \text { DLHs per unit @ } \$ 10.00 \text { per DLH } \
8,900 \text { DLHs @ } \$ 10.50 \text { per DLH } & \text { VOH rate per DLH } \$ .75  \
\text { Variable OH } \$ 6,400 & \text { FOH rate per DLH } \$ 1.90 \
\text { Fixed OH } \$ 17,500 &\text { Budgeted FOH \$16,910 }
\end{array}$

Refer to Epplin Company.What is the efficiency variance?
A)$4,450 F
B)$4,450 U
C)$1,000 F
D)$1,000 U

Quizplus · Accepted Answer

The efficiency variance is calculated as (Actual DLHs - Standard DLHs) x Standard Rate. Standard DLHs = 1,800 units x 5 DLHs/unit = 9,000 DLHs. Efficiency variance = (8,900 - 9,000) x $10 = $1,000 F.

Epplin Company the Following Information Is Provided for Epplin Company

Epplin Company
the Following Information Is Provided for Epplin Company