Colina Production Company uses a standard costing system. The following information pertains to 2014. Direct labor hours is the driver used to assign overhead costs to products. The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data for 5,000 units is as follows:
What is the variable overhead efficiency variance for Colina Production Company?
A) $562.50 (
B) $3,000.00 (
C) $1,687.50 (
D) $562.50 (

Question

Colina Production Company uses a standard costing system. The following information pertains to 2014. Direct labor hours is the driver used to assign overhead costs to products.  The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data for 5,000 units is as follows:
 What is the variable overhead efficiency variance for Colina Production Company?
A) $562.50 (
B) $3,000.00 (
C) $1,687.50 (
D) $562.50 (

Quizplus · Accepted Answer

The Answer of Colina Production Company uses a standard costing system. The following information pertains to 2014. Direct labor hours is the driver used to assign overhead costs to products.  The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data for 5,000 units is as follows:
 What is the variable overhead efficiency variance for Colina Production Company?
A) $562.50 (
B) $3,000.00 (
C) $1,687.50 (
D) $562.50 (

Colina Production Company Uses a Standard Costing System