Griffen Corporation uses a standard costing system. Information for the month of

ID: 2636834 • Letter: G

Question

Griffen Corporation uses a standard costing system. Information for the month of May is as follows:

$80,000

12,000 hrs.

10,000 hrs.

$18

The factory overhead rate is based on a normal volume of 12,000 direct labor hours. Standard cost data at 12,000 direct labor hours were as follows:

$48,000

24,000

$72,000

What is the variable overhead efficiency variance for Griffen?

Actual manufacturing overhead costs ($26,000 is fixed)

$80,000

Direct labor: Actual hours worked

12,000 hrs.

Standard hours allowed for actual production

10,000 hrs.

Average actual labor cost per hour

$18

variable overhead efficiency variance = ( SH ? AH )

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