Fleetwood Company Fleetwood Company Uses a Standard Cost System for Its

Multiple Choice

Fleetwood Company Fleetwood Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Fleetwood produced 4,500 units:
$\begin{array}{ll}\text { Standard: }\\\text { DLH per unit } & 2.50 \\\text { Variable overhead per DLH } & \$ 1.75 \\\text { Fixed overhead per DLH } & \$ 3.10 \\\text { Budgeted variable overhead } & \$ 21,875 \\\text { Budgeted fixed overhead } & \$ 38,750\\\\\text { Actual: }\\\text {Direct labor hours }&10,000\\\text { Variable overhead}&\$26,250\\\text { Fixed overhead}&\$38,000\\\end{array}$ Refer to Fleetwood Company.Using the three-variance approach,what is the efficiency variance?

A) $9,937.50 F
B) $2,187.50 F
C) $2,187.50 U
D) $2,937.50 F