Commodore Company Commodore Company Uses a Standard Cost System for Its Production

question 45

Multiple Choice

Commodore Company
Commodore 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 Commodore produced 5,000 units:

• A)$1,800 F
• B)$1,800 U
• C)$2,050 U
• D)$2,550 F

Standard:
DLH per unit	3.00
Variable overhead per DLH	$1.80
Fixed overhead per DLH	$3.25
Budgeted variable overhead	$27,250
Budgeted fixed overhead	$49,500

Actual:
Direct labor hours	16,000
Variable overhead	$31,325
Fixed overhead	$49,750

Refer to Commodore Company.Using the three-variance approach,what is the efficiency variance?

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