CPA · Question 06 · Area I: Business Analysis
A company uses a standard costing system. For the month of June, the following data is available regarding variable overhead:<br/>- Budgeted Variable Overhead: $100,000 based on 20,000 direct labor hours.<br/>- Actual Variable Overhead: $110,000.<br/>- Actual Direct Labor Hours Worked: 21,000.<br/>- Standard Direct Labor Hours Allowed for Actual Production: 22,000.<br/><br/>Calculate the Variable Overhead Efficiency Variance.
Answer options:
$5,000 Unfavorable
$5,000 Favorable
$10,000 Unfavorable
$5,000 Unfavorable
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