Genesis Company Genesis Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Genesis produced 5,000 units:
Refer to Genesis Company. Using the three-variance approach, what is the efficiency variance?
A) $1,800 F
B) $1,800 U
C) $2,050 U
D) $2,550 F

Question

Genesis Company Genesis Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Genesis produced 5,000 units:
 Refer to Genesis Company. Using the three-variance approach, what is the efficiency variance?
A) $1,800 F 
B) $1,800 U 
C) $2,050 U 
D) $2,550 F

Quizplus · Accepted Answer

The Answer of Genesis Company Genesis Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Genesis produced 5,000 units:
 Refer to Genesis Company. Using the three-variance approach, what is the efficiency variance?
A) $1,800 F 
B) $1,800 U 
C) $2,050 U 
D) $2,550 F

Genesis Company Genesis Company Uses a Standard Cost System for Its