Reference: 11-01
Bryan Company Employs a Standard Cost System in Which

Reference: 11-01
Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product: $$\begin{array} { | l | l | l | l | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\\hline \text { Direct materials } & 6.0 \text { grams } & \$ 3.50 / \text { gram } & \$ 21.00 \\\hline \text { Direct labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & 14.30 \\\hline & & & \$ 35.30 \\\hline\end{array}$$ During March, Bryan purchased 165,000 grams of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March using 151,000 grams of direct material and 32,000 direct labour hours.
-The following standards for variable manufacturing overhead have been established for a company that makes only one product: $$\begin{array}{l}\begin{array} { | l | l | } \hline \text { Standard hours per unit of output } & 7.8 \text { hours } \\\hline \text { Standard variable overbead rate } & \$ 12.55 \text { per hour } \\\hline\end{array}\\\text { The following data pertain to operations for the last month: }\\\begin{array} { | l | l | } \hline \text { Actual hours } & 2,900 \text { hours } \\\hline \text { Actual total variable overhead cost } & \$ 31,330 \\\hline \text { Actual output } & 200 \text { units } \\\hline\end{array}\end{array}$$ What is the variable overhead efficiency variance for the month?

A) $130 F.
B) $4,320 U.
C) $130 U.
D) $4,320 F.