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Glendale Brands Company uses standard costs for its manufacturing division. Standards specify 0.1 ...
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Glendale Brands Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data:
Production volume 6,000 units
Budgeted variable overhead costs $14,000
Budgeted direct labor hours (DLHr) 600 hours
At the end of the year, actual data were as follows:
Production volume 4,000 units
Actual variable overhead costs $15,200
Actual direct labor hours (DLHr) 480 hours
What is the variable overhead efficiency variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)
A) $1,866 F
B) $1,866 U
C) $2,534 U
D) $2,534 F
Textbook
Horngren's Financial & Managerial Accounting, The Financial Chapters
Edition:
5
th
Authors:
Miller-Nobles, Mattison, Matsumura
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This was certainly a tough question, loving the expertise
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