The Following Standards for Variable Manufacturing Overhead Have Been Established

question 219

Multiple Choice

The following standards for variable manufacturing overhead have been established for a company that makes only one product:
$\begin{array}{|l|r|}\hline \text { Standard hours per unit of output } & 7.8 \text { hours } \\\hline \text { Standard variable overhead rate } & \$ 12.55 \text { per hour } \\\hline\end{array}$
The following data pertain to operations for the last month:
$\begin{array}{|l|r|}\hline \text { Actual hours } & 2,900 \text { hours } \\\hline \text { Actual total variable overhead cost } & \$ 36,975 \\\hline \text { Actual output } & 200 \text { units } \\\hline\end{array}$
What was the variable overhead efficiency variance for the month?

• A) $0.
• B) $16,817 unfavourable.
• C) $580 unfavourable.
• D) $17,397 unfavourable.

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Definitions:

Priority

The status given to tasks or objectives based on their importance or urgency, determining the order in which they are addressed or executed.

Degree of Interaction

The extent or level of communication, involvement, or influence among participants or variables within a study or situation.

Mixed Methods Designs

Research approaches that combine qualitative and quantitative methods to gather and analyze data.

Analyzed Simultaneously

The process of examining multiple variables or data points at the same time to understand relationships or patterns.