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Business, 25.12.2019 06:31 axelsanchez7710

Zero company's standard factory overhead rate is $3.75 per direct labor hour (dlh), calculated at 90% capacity = 900 standard dlhs. in december, the company operated at 80% of capacity, or 800 standard dlhs. budgeted factory overhead at 80% of capacity is $3,150, of which $1,350 is fixed overhead. for december, the actual factory overhead cost was $3,800 for 840 actual dlhs, of which $1,300 was for fixed factory overhead.

assuming the use of a four-way breakdown (decomposition) of the total overhead variance, what is the variable factory overhead efficiency variance for zero company in december?

$650 unfavorable.

$150 unfavorable.

$225 favorable.

$425 unfavorable.

$90 unfavorable.

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