Reference: 11-13
The Upton Company employs a standard costing system in which variable overhead is assigned to production on the basis of direct labour hours. Data for the month of February include the following:
Variable manufacturing overhead cost incurred: $48,700
Total variable overhead variance: $300 F
Standard hours allowed for actual production: 7,000
Actual direct labour hours worked: 6,840
-The variable overhead efficiency variance is?
A)$740 F.
B)$1,120 F.
C)$950 U.
D)$430 U.

Question

Quizplus · Accepted Answer

The Answer of Reference: 11-13
The Upton Company employs a standard costing system in which variable overhead is assigned to production on the basis of direct labour hours. Data for the month of February include the following:
Variable manufacturing overhead cost incurred: $48,700
Total variable overhead variance: $300 F
Standard hours allowed for actual production: 7,000
Actual direct labour hours worked: 6,840
-The variable overhead efficiency variance is?
A)$740 F.
B)$1,120 F.
C)$950 U.
D)$430 U.

Reference: 11-13 The Upton Company Employs a Standard Costing System in Which