$\begin{array}{lr}
\text { Variable overhead } & \$ 22,500 \
\text { Fixed ov erhead } & \underline{13,500} \
\text { Total overhead } & \$ \underline{36,000}
\end{array}$
-Refer to HyTech Production Company. What is the variable overhead efficiency variance?
A) $562.50 F
B) $562.50 U
C) $1,687.50 F
D) $3,000.00 U

Question

Quizplus · Accepted Answer

The variable overhead efficiency variance is calculated by comparing the actual hours worked to the standard hours allowed for the actual production, multiplied by the variable overhead rate. The given options suggest that the variance is unfavorable (U), and $562.50 U is the correct calculation based on the provided data.