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Business, 16.08.2020 01:01 leopolddc4006

Lance Production Company has the following information: Standard fixed factory overhead rates per direct labor-hour $1.50
Standard variable factory overhead rates per direct labor-hour $5.00
Actual number of units produced 6,000 units
Actual factory overhead costs (includes $70,000 fixed) $78,000
Actual direct labor hours 6,000 hours
Standard factory overhead rates are based on a normal monthly volume of 5,000 units (1 standard direct labor-hour per unit)
What is Lance's variable overhead efficiency variance?
A. $4,000 (F)
B. $3,000 (F)
C. $6,000 (U)

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Answers: 2

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