Descamps Inc. has provided the following data concerning one of the products in

Question

Descamps Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Variable manufacturing overhead 0.20 hours $6.10 per hour The company has reported the following actual results for the product for July: Actual output 4,200 units Actual direct labor-hours 780 hours Actual variable overhead rate $ 6.20 per hour The variable overhead efficiency variance for the month is closest to: Multiple Choice

$372 F

$366 U

$366 F

$372 U

Explanation / Answer

variable overhead efficiency variance = (standard hour-actual hour)standard rate

                                                     = (4200*.20-780)6.10

Variable overhead efficiency variance = 366 F

so answer is c) $366 F

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.