Variable overhead efficiency variance for the period

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Reference no: EM131206629

Derf Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours. Two direct labor-hours are required for each unit produced. The denominator activity was set at 10,200 units. Manufacturing overhead was budgeted at $204,000 for the period; 20 percent of this cost was fixed. The 19,600 hours worked during the period resulted in production of 9,300 units. Variable manufacturing overhead cost incurred was $161,600 and fixed manufacturing overhead cost was $42,000.

The variable overhead efficiency variance for the period was:

$1,200 Unfavorable

$4,800 Unfavorable

$3,600 Unfavorable

$8,000 Unfavorable

Reference no: EM131206629

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