Reference no: EM132590527

Porter Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product. The allocation base for variable overhead costs is direct labor hours.

At the beginning of the year, the static budget for variable overhead costs included the following data:

Production volume. 6,000 units
Budgeted variable overhead costs $16,000
Budgeted direct labor hours (DLHr) 600 hours

At the end of the year, actual data were as follows:

Production volume 4,100 units
Actual variable overhead costs $15,200
Actual direct labor hours (DLHr) 500 hours

Question 1: What is the variable overhead efficiency variance? (Round any intermediate calculations to the near event, and your final answer to the nearest dollar.)

Option A. $2,736 U

Option B. $2,736 F

Option C. $2,400 F

Option D. $2,400 U