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

In February the company's budgeted production was 6,900 units, but the actual production was 7,000 units. The company used 1,980 direct labor-hours to produce this output. The actual variable overhead cost was $10,296. The company applies variable overhead on the basis of direct labor-hours.

-The variable overhead efficiency variance for February is:
A)$624 F
B)$600 F
C)$624 U
D)$600 U

Question

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

In February the company's budgeted production was 6,900 units, but the actual production was 7,000 units. The company used 1,980 direct labor-hours to produce this output. The actual variable overhead cost was $10,296. The company applies variable overhead on the basis of direct labor-hours.

-The variable overhead efficiency variance for February is:
A)$624 F 
B)$600 F 
C)$624 U 
D)$600 U

Quizplus · Accepted Answer

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

In February the company's budgeted production was 6,900 units, but the actual production was 7,000 units. The company used 1,980 direct labor-hours to produce this output. The actual variable overhead cost was $10,296. The company applies variable overhead on the basis of direct labor-hours.

-The variable overhead efficiency variance for February is:
A)$624 F 
B)$600 F 
C)$624 U 
D)$600 U

Zacher Corporation Makes a Product with the Following Standards for Direct