The Haney Corporation has a standard costing system. Variable manufacturing overhead is applied on the basis of direct labor-hours. The following data are available for January:•Actual variable manufacturing overhead: $25,500 •Actual direct labor-hours worked: 5,800 •Variable overhead rate variance: $600 Favorable •Variable overhead efficiency variance: $2,475 Unfavorable The standard hours allowed for January production is: (Round your intermediate calculations to 2 decimal places.)
A. 5,975 hours
B. 5,425 hours
C. 5,250 hours
D. 5,800 hours
Answer: C
Business
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