Desue Corporation makes a product with the following standards for labor and variable overhead:

The company budgeted for production of 6,500 units in December, but actual production was 6,300 units. The company used 610 direct labor-hours to produce this output. The actual variable overhead rate was $6.40 per hour. The company applies variable overhead on the basis of direct labor-hours.

-The variable overhead efficiency variance for December is:
A)$140 F
B)$128 F
C)$128 U
D)$140 U

Question

Desue Corporation makes a product with the following standards for labor and variable overhead:

The company budgeted for production of 6,500 units in December, but actual production was 6,300 units. The company used 610 direct labor-hours to produce this output. The actual variable overhead rate was $6.40 per hour. The company applies variable overhead on the basis of direct labor-hours.

-The variable overhead efficiency variance for December is:
A)$140 F 
B)$128 F 
C)$128 U 
D)$140 U

Quizplus · Accepted Answer

The Answer of Desue Corporation makes a product with the following standards for labor and variable overhead:

The company budgeted for production of 6,500 units in December, but actual production was 6,300 units. The company used 610 direct labor-hours to produce this output. The actual variable overhead rate was $6.40 per hour. The company applies variable overhead on the basis of direct labor-hours.

-The variable overhead efficiency variance for December is:
A)$140 F 
B)$128 F 
C)$128 U 
D)$140 U

Desue Corporation Makes a Product with the Following Standards for Labor