A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.
Standard hours per unit of output 4.20 direct labor-hours
Standard variable overhead rate $11.55 per direct labor-hour
The following data pertain to operations for the last month:
Actual direct labor-hours 8,600 direct labor-hours
Actual total variable manufacturing overhead cost $ 95,890 Actual output 1,900 units
What is the variable overhead efficiency variance for the month?
Multiple Choice
a. $6,913 U
b. $7,161 U
c. $6,913 F
d. $3,192 U
