The Haney Corporation Has a Standard Costing System $\bullet$ Actual Variable Manufacturing Overhead: $25,500

Multiple Choice

The Haney Corporation has a standard costing system. Variable manufacturing overhead is applied on the basis of direct labor-hours. The following data are available for January: $\bullet$ Actual variable manufacturing overhead: $25,500
$\bullet$ Actual direct labor-hours worked: 5,800
$\bullet$ Variable overhead rate variance: $600 Favorable
$\bullet$ Variable overhead efficiency variance: $2,475 Unfavorable
The standard hours allowed for January production is:

A) 5,975 hours
B) 5,800 hours
C) 5,425 hours
D) 5,250 hours