Reference: 11-13 The Upton Company Employs a Standard Costing System in Which

Multiple Choice

Reference: 11-13
The Upton Company employs a standard costing system in which variable overhead is assigned to production on the basis of direct labour hours. Data for the month of February include the following:
Variable manufacturing overhead cost incurred: $48,700
Total variable overhead variance: $300 F
Standard hours allowed for actual production: 7,000
Actual direct labour hours worked: 6,840
-The variable overhead efficiency variance is?

A) $740 F.
B) $1,120 F.
C) $950 U.
D) $430 U.