Couey Corporation, which produces highway lighting poles, has provided the following data:
-The variable overhead efficiency variance for indirect labor is:
A) $2,196 U
B) $1,829 U
C) $2,196 F
D) $1,829 F

Question

Couey Corporation, which produces highway lighting poles, has provided the following data: 
-The variable overhead efficiency variance for indirect labor is:
A) $2,196 U 
B) $1,829 U 
C) $2,196 F 
D) $1,829 F

Quizplus · Accepted Answer

The variable overhead efficiency variance is calculated as the difference between the actual hours worked and the standard hours allowed, multiplied by the standard variable overhead rate. The variance is unfavorable (U) if actual hours exceed standard hours, leading to higher costs.

Couey Corporation, Which Produces Highway Lighting Poles, Has Provided the Following