Solution-What is the variable overhead efficiency variance

What is the variable overhead efficiency variance for month

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Question - Saturn Limited budgets to produce 10,000 units of product RJ, each requiring 45 minutes of labour. Labour is charged at £20 per hour, and variable overheads at £15 per labour hour. During a particular month, 11,000 units were produced; 8,000 hours of labour were paid at a total cost of £168,000. Variable overheads in the month amounted to £132,000.

1. What is the variable overhead efficiency variance for the month?

A. £5,000 A

B. £3,750 F

C. £5,250 F

D. £10,000 A

2. What is the variable overhead expenditure variance for the month?

A. £3,750 F

B. £4,125 F

C. £12,000 A

D. £12,000 F

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What is the variable overhead efficiency variance for month

Reference no: EM132980643

Reference no: EM132980643

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