The LAH company produces product BG,which includes variable overhead standard cost of 5 hours at £15 per hour,based on a budget production of 3,000 units.The actual results for the last period were as follows:
$$\begin{array} { l c }
\text { Production } & 3,100 \
\text { Hours incurred } & 16,000 \
\text { Variable overhead } & £ 235,00
\end{array}$$
Calculate the variable overhead efficiency variance.
A) £5,000 favorable
B) £5,000 adverse
C) £7,500 favorable
D) £7,500 adverse

Question

The LAH company produces product BG,which includes variable overhead standard cost of 5 hours at £15 per hour,based on a budget production of 3,000 units.The actual results for the last period were as follows:
$$\begin{array} { l c } 
\text { Production } & 3,100 \
\text { Hours incurred } & 16,000 \
\text { Variable overhead } & £ 235,00
\end{array}$$
Calculate the variable overhead efficiency variance.
A) £5,000 favorable
B) £5,000 adverse
C) £7,500 favorable
D) £7,500 adverse

Quizplus · Accepted Answer

The Answer of The LAH company produces product BG,which includes variable overhead standard cost of 5 hours at £15 per hour,based on a budget production of 3,000 units.The actual results for the last period were as follows:
$$\begin{array} { l c } 
\text { Production } & 3,100 \
\text { Hours incurred } & 16,000 \
\text { Variable overhead } & £ 235,00
\end{array}$$
Calculate the variable overhead efficiency variance.
A) £5,000 favorable
B) £5,000 adverse
C) £7,500 favorable
D) £7,500 adverse