Switsdorf Company Has the Following Information Available for Variable Overhead

question 38

Multiple Choice

Switsdorf Company has the following information available for variable overhead costs.Direct labor hours are the cost driver for variable overhead costs.
$\begin{array}{ll}\text { Actual variable overhead costs } & \$ 5,120 \\\text { Standard variable overhead costs } & \$ 3.00 \text { per hour } \\\text { Actual direct labor hours } & 2,000 \text { hours } \\\text { Standard direct labor hours per unit } & 3 \text { hours } \\\text { Units produced } & 1,000\end{array}$
What is the variable overhead efficiency variance?

• A) $1,000 Favorable
• B) $2,000 Unfavorable
• C) $2,000 Favorable
• D) $3,000 Favorable

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