Reference no: EM132638358

Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

                                                    Standard Quantity
                                                 Inputs or Hours per Unit of Output Standard Price or Rate
Direct materials                           5..7 liters$                 5.40per liter
Direct labor                                0.70hours                 $20.60per hour
Variable manufacturing overhead    0.70hours                  $5.50per hour

The company has reported the following actual results for the product for December:

Actual output 4,100
Raw materials purchased 25,100
Actual price of raw materials $ 4.80
Actual cost of raw materials purchased $ 120,480
Raw materials used in production 23,360
Actual direct labor hours 2,700
Actual direct labor rate $ 21.20
Actual direct labor cost $ 57,240
Actual variable overhead rate $ 5.90
Actual variable overhead cost $ 15,930
The variable overhead efficiency variance for the month

Problem 1: The variable overhead efficiency variance for the month is closest to:

Multiple Choice

Option 1: $1,003 F

Option 2: $935 U

Option 3: $1,003 U

Option 4: $935 F