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The following information is available from the Terry Company:
| | | | |
| Actual total factory overhead cost incurred | $ | 25,000 | |
| Actual fixed overhead cost incurred | $ | 10,400 | |
| Budgeted fixed overhead expenses | $ | 11,000 | |
| Actual direct labor hours (DLH) worked | | 4,400 | |
| Standard DLHs for this periods production (output) | | 4,000 | |
| Standard variable overhead rate per DLH | $ | 3.00 | |
| Standard fixed overhead rate per DLH | $ | 2.50 | |
| |
What was the variable overhead efficiency variance for the period, to the nearest whole dollar?
Multiple Choice
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$600 favorable.
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$800 unfavorable.
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$1,200 unfavorable.
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$1,400 unfavorable.
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$2,000 unfavorable.
Answer & Explanation
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