CPA · Question 02 · Area I: Business Analysis
A manufacturing company uses a standard cost system. For the month of June, the following data is available regarding variable overhead:<br/><br/>- Actual Variable Overhead: $185,000<br/>- Actual Machine Hours Worked: 22,000 hours<br/>- Standard Machine Hours Allowed for Actual Production: 20,000 hours<br/>- Standard Variable Overhead Rate: $8 per machine hour<br/><br/>What is the Variable Overhead Efficiency Variance for June?
Answer options:
$9,000 Unfavorable
$16,000 Favorable
$16,000 Unfavorable
$25,000 Unfavorable
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