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Switsdorf Company Has the Following Information Available for Variable Overhead

Question 126

Multiple Choice

Switsdorf Company has the following information available for variable overhead costs.Direct labor hours are the cost driver for variable overhead costs.
 Actual variable overhead costs $5,120 Standard variable overhead costs $3.00 per hour  Actual direct labor hours 2,000 hours  Standard direct labor hours per unit 3 hours  Units produced 1,000\begin{array}{ll}\text { Actual variable overhead costs } & \$ 5,120 \\\text { Standard variable overhead costs } & \$ 3.00 \text { per hour } \\\text { Actual direct labor hours } & 2,000 \text { hours } \\\text { Standard direct labor hours per unit } & 3 \text { hours } \\\text { Units produced } & 1,000\end{array}
What is the variable overhead efficiency variance?


A) $1,000 Favorable
B) $2,000 Unfavorable
C) $2,000 Favorable
D) $3,000 Favorable

Correct Answer:

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