Dooley Company Has the Following Information Available for Variable Overhead

question 94

Multiple Choice

Dooley Company has the following information available for variable overhead costs.Direct labor hours are the cost driver for variable overhead costs.
$\begin{array}{ll}\text { Actual variable overhead costs } & \$ 4,700 \\\text { Standard variable overhead costs } & \$ 1.20 \text { per hou1 } \\\text { Actual direct labor hours } & 3,750 \text { hours } \\\text { Standard direct labor hours per unit } & 5 \text { hours } \\\text { Units produced } & 700\end{array}$
What is the variable overhead efficiency variance?

• A) $300 Favorable
• B) $300 Unfavorable
• C) $500 Favorable
• D) $500 Unfavorable

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Definitions:

Fringe Benefit

Additional compensation provided to employees beyond their base salary, such as health insurance, retirement benefits, and paid vacations.

Health-Promotion Program

Initiatives designed to improve individual or community health through preventive measures and lifestyle changes.

Destructive Stress

A level of stress that negatively impacts an individual's mental, physical, and emotional well-being.

Performance

The act of performing or carrying out tasks and duties, measured against pre-established standards or goals.