Genesis Company Genesis Company Uses a Standard Cost System for Its

question 161

Multiple Choice

Genesis Company Genesis Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Genesis produced 5,000 units:
$\begin{array}{ll}\text { Standard: }\\\text { DLH per unit } & 3.00\\\text { Variable overhead per DLH } & \$ 1.80 \\\text { Fixed overhead per DLH } & \$ 3.25 \\\text { Budgeted variable overhead } & \$ 27,250\\\text { Budgeted fixed overhead } & \$ 49,500\\\\\text { Actual: }\\\text {Direct labor hours }&16,000\\\text { Variable overhead}&\$31,325\\\text { Fixed overhead}&\$49,750\\\end{array}$ Refer to Genesis Company.Using the four-variance approach,what is the variable overhead efficiency variance?

• A)$ 250 U
• B)$ 250 F
• C)$1,800 U
• D)$1,800 F