Raven Applies Overhead Based on Direct Labor Hours

question 1

Multiple Choice

Raven applies overhead based on direct labor hours.The variable overhead standard is 2 hours at $11 per hour.During July,Raven spent $116,700 for variable overhead.8,890 labor hours were used to produce 4,700 units.What is the variable overhead efficiency variance?

• A)$5,610 favorable
• B)$46,090 favorable
• C)$18,910 favorable
• D)$18,910 unfavorable

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