Burkett Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labor hour. The overhead rate is based on 10,000 hours. Actual results were: The variable overhead efficiency variance was
A) $10,000 F
B) $50,000 U
C) $35,000 U
D) $15,000 U

Question

Burkett Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labor hour. The overhead rate is based on 10,000 hours. Actual results were:  The variable overhead efficiency variance was
A) $10,000 F 
B) $50,000 U 
C) $35,000 U 
D) $15,000 U

Quizplus · Accepted Answer

The Answer of Burkett Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labor hour. The overhead rate is based on 10,000 hours. Actual results were:  The variable overhead efficiency variance was
A) $10,000 F 
B) $50,000 U 
C) $35,000 U 
D) $15,000 U

Burkett Company Uses a Standard Cost System