Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The variable overhead efficiency variance for August is:
A) $720 Unfavorable
B) $720 Favorable
C) $780 Unfavorable
D) $780 Favorable

Question

Handerson Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in August.
 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The variable overhead efficiency variance for August is:
A) $720 Unfavorable 
B) $720 Favorable 
C) $780 Unfavorable 
D) $780 Favorable

Quizplus · Accepted Answer

The Answer of Handerson Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in August.
 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The variable overhead efficiency variance for August is:
A) $720 Unfavorable 
B) $720 Favorable 
C) $780 Unfavorable 
D) $780 Favorable

Handerson Corporation Makes a Product with the Following Standard Costs