Venus Company Applies Overhead Based on Direct Labor Hours

question 11

Multiple Choice

Venus Company applies overhead based on direct labor hours.The variable overhead standard is 10 hours at $3.50 per hour.During October,Venus Company spent $157,600 for variable overhead.47,440 labor hours were used to produce 4,800 units.What is the variable overhead efficiency variance?

• A)$8,440 favorable
• B)$1,960 favorable
• C)$10,400 favorable
• D)$1,960 unfavorable

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