Hamilton Pty Ltd Uses a Standard Costing System for Product

question 39

Multiple Choice

Hamilton Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year:
The following were the actual results:
Calculate the amount of variable overhead efficiency variance.

• A) $25 000 favourable
• B) $25 000 unfavourable
• C) $15 000 favourable
• D) $15 000 unfavourable

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