Brummer Corporation Makes a Product Whose Variable Overhead Standards Are

Multiple Choice

Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.20 hours per unit. The variable overhead rate standard is $8.90 per hour. In January the company produced 4,900 units using 1,010 direct labor-hours. The actual variable overhead rate was $8.80 per hour.The variable overhead efficiency variance for January is:

A) $267 Favorable
B) $264 Unfavorable
C) $267 Unfavorable
D) $264 Favorable