Underfoot Products Uses Standard Costing Compute the Variable Overhead Efficiency Variance

question 48

Multiple Choice

Underfoot Products uses standard costing.The following information about overhead was generated during May: $$\begin{array} { l l } \text { Standard varable cverhead rate } & \$ 2 \text { per machine hour } \\\text { Standard fixed cverhead rate } & \$ 1 \text { per machine hour } \\\text { Actual variable overhead costs } & \$ 390,000 \\\text { Actual Eixed cverhead costs } & \$ 175,000 \\\text { Budgeted fixed dverhead costs } & \$ 190,000 \\\text { Standard machine hours per urit produced } & 10 \\\text { Good urits produced } & 18,000 \\\text { Actual machine hours } & 195000\end{array}$$
Compute the variable overhead efficiency variance.

• A) $50000 (F)
• B) $50000 (U)
• C) $40000 (F)
• D) $30000 (U)

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