Budgeted Variable Overhead for the Year Is $120,000

question 107

Multiple Choice

Budgeted variable overhead for the year is $120,000. Expected activity is 20,000 standard direct labor hours. The actual hours worked were 18,000 and the standard hours allowed for actual production were 19,500. The variable overhead efficiency variance is

• A) $0.
• B) $12,000 F.
• C) $3,000 F.
• D) $9,000 F.
• E) None of these.

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Definitions:

Uniform Distribution

A type of probability distribution where all outcomes are equally likely to occur within a defined range.

Density Function

A mathematical function that describes the probability distribution of a continuous random variable, showing the likelihood of different outcomes.

Area

Refers to the extent of a two-dimensional surface within a boundary, measured in square units.