The Haney Corporation Has a Standard Costing System

question 85

Multiple Choice

The Haney Corporation has a standard costing system. Variable manufacturing overhead is applied on the basis of direct labor-hours. The following data are available for January:Actual variable manufacturing overhead: $25,500Actual direct labor-hours worked: 5,800Variable overhead rate variance: $600 FavorableVariable overhead efficiency variance: $2,475 UnfavorableThe standard hours allowed for January production is:

• A) 5,975 hours
• B) 5,800 hours
• C) 5,425 hours
• D) 5,250 hours