Valera Corporation Makes a Product with the Following Standards for Labor

question 50

Multiple Choice

Valera Corporation makes a product with the following standards for labor and variable overhead:
The company budgeted for production of 5,300 units in July, but actual production was 5,400 units. The company used 2,130 direct labor-hours to produce this output. The actual variable overhead rate was $6.10 per hour. The company applies variable overhead on the basis of direct labor-hours.
-The variable overhead efficiency variance for July is:

• A) $183 F
• B) $180 U
• C) $180 F
• D) $183 U

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Definitions:

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