Sigmo Company, which uses a standard cost system, budgeted $800,000 of fixed overhead when 50,000 machine hours were anticipated. Other data for the period were:Actual units produced: 10,600Actual machine hours worked: 51,800Actual variable overhead incurred: $475,000Actual fixed overhead incurred: $790,100Standard variable overhead rate per machine hour: $8.50Standard production time per unit: 5 hoursSigmo's variable-overhead efficiency variance is:
A. $10,200F.
B. $15,300U.
C. $15,300F.
D. $10,200U.
E. None of the answers is correct.
Answer: A
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