A Manufacturing Company That Has Only One Product Has Established

question 359

Multiple Choice

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. The following data pertain to operations for the last month:
What is the variable overhead efficiency variance for the month?

• A) $3,435 Unfavorable
• B) $7,133 Favorable
• C) $2,652 Unfavorable
• D) $7,133 Unfavorable

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