Which variable manufacturing overhead

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Ganges Inc. uses a standard costing system in which variable manufacturing overhead (VMOH) is applied based on standard direct labor hours (DLHs). Partial results for the most recent period were:

Budgeted VMOH cost.........................$18,600

Budgeted units of production...............775 units

Actual VMOH cost incurred................$22,620

Actual DLHs for the period ..............1600 DLHs

Actual unit produced..........................750 units

VMOH rate variance........................$3,420 Unfavorable

VMOH Efficiency Variance..............$1,200 Unfavorable

Standard DLHs allowed for the period was closest to:

A. 1,500 DLHs

B. 1,985 DLHs

C. 1,316 DLHs

D. 1,464 DLHs

E. None of the above.

Reference no: EM131293250

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