Desue Corporation Makes a Product with the Following Standards for Labor

question 266

Multiple Choice

Desue Corporation makes a product with the following standards for labor and variable overhead: The company budgeted for production of 6,500 units in December,but actual production was 6,300 units.The company used 610 direct labor-hours to produce this output.The actual variable overhead rate was $6.40 per hour.The company applies variable overhead on the basis of direct labor-hours. The variable overhead efficiency variance for December is:

• A)$140 F
• B)$128 F
• C)$128 U
• D)$140 U