The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March: The variable overhead efficiency variance for March is:
A)$12,400 F
B)$6,160 U
C)$12,400 U
D)$6,160 F

Question

The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March:  The variable overhead efficiency variance for March is:
A)$12,400 F 
B)$6,160 U 
C)$12,400 U 
D)$6,160 F

Quizplus · Accepted Answer

The Answer of The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March:  The variable overhead efficiency variance for March is:
A)$12,400 F 
B)$6,160 U 
C)$12,400 U 
D)$6,160 F

The Dillon Corporation Makes and Sells a Single Product