Question

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.4 ounces $ 3.00 per ounce $ 16.20 Direct labor 0.5 hours $ 12.00 per hour $ 6.00 Variable overhead 0.5 hours $ 9.00 per hour $ 4.50 The company reported the following results concerning this product in June. Originally budgeted output 4,200 units Actual output 4,200 units Raw materials used in production 20,400 ounces Purchases of raw materials 21,500 ounces Actual direct labor-hours 560 hours Actual cost of raw materials purchases $ 42,900 Actual direct labor cost $ 14,200 Actual variable overhead cost $ 4,100 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for June is: Garrison 16e Rechecks 2017-10-31 Multiple Choice $13,860 F $14,630 U $14,630 F $13,860 U

Answer 1

1	The variable overhead efficiency variance for June is
	= (AH - SH) SR
	= (560 hours - 2,100 hours) $9.00 per hour
	-13860
Answer	13860	F

Answer: option a 13860 F