The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 8.1hoursStandard variable overhead rate$14.85per hour?The following data pertain to operations for the last month: Actual hours 8,600hoursActual total variable manufacturing overhead cost$130,720 Actual output 1,000units?What is the variable overhead efficiency variance for the month?

A. $7,600 F
B. $7,425 U
C. $2,835 F
D. $7,600 U


Answer: B

Business

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