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Underfoot Products uses standard costing. The following information about overhe

ID: 2358997 • Letter: U

Question

Underfoot Products uses standard costing. The following information about overhead was generated during May: Standard variable overhead rate: $2 per machine hour Standard fixed overhead rate : $1 per machine hour Actual variable overhead costs: $390,000 Actual fixed overhead costs: $175,000 Budgeted fixed overhead costs: $190,000 Standard machine hours per unit produced: 10 Good units produced: 18,000 Actual machine hours: 198000 Compute the variable overhead efficiency variance. A. $56000 (F) B. 56000 (U) C. $46000 (F) D. $36000 (U)

Explanation / Answer

C. $46000