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The following standards for variable manufacturing overhead have been established for a company that makes only one product Standard houts per unit of output 6
The following standards for variable manufacturing overhead have been established for a company that makes only one product Standard houts per unit of output 6.2 hours Standard variable on the rate 012.60 per hour The following data per into operations for the last month Actual hours astutstal variable nocturing overhead coat Metal natura What in the variatie overhead efficiency variance for the month? 2,625 hours 133, 715 200 units MR Choc
Expert Solution
Standard hours per unit = 6.2
Standard rate per hour = $12.6
units = 200
Standard hours = 1240
Actual hours = 2625
Variable overhead efficiency = (2625-1240)*$12.60 = 17451
Since the actual hours are higher than standard hours it is unfavourable
so the correct answer is 2nd option
17451U
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