Budgeted Variable Overhead for the Year Was $130,000

question 124

Multiple Choice

Budgeted variable overhead for the year was $130,000. Expected activity was 20,000 standard direct labour hours. The actual hours worked were 18,250, and the standard hours allowed for actual production were 19,750. What was the variable overhead efficiency variance?

• A) $0
• B) $1,500 F
• C) $9,750 F
• D) $12,000 F

---

Definitions:

Accounts Payable

Liabilities or amounts owed by a company to its creditors/vendors for goods and services received but not yet paid for.

Buildings

Structures such as houses, offices, and factories that are constructed as fixed assets for use in operations or investment.

Land

A type of real estate that refers to the earth's surface extending downward to the center of the earth and upward infinitely into space, including all natural resources.

Equipment

Tangible property used in operations, such as machinery and office equipment, which is not intended for sale.