Security Doors Has a Standard Variable Overhead Rate of $4

question 15

Multiple Choice

Security Doors has a standard variable overhead rate of $4 per direct labour hour.The standard quantity of direct labour per unit of production is 3 hours.The company's static budget was based on 50 000 units.Actual results for the year are as follows.What was Security Door's variable overhead efficiency variance?

• A) $45 000 favourable
• B) $60 000 favourable
• C) $45 000 unfavourable
• D) $60 000 unfavourable