Bailey Corporation

Multiple Choice

Bailey Corporation.incurred 2,300 direct labor hours to produce 600 units of product.Each unit should take 4 direct labor hours.Bailey Corporation applies variable overhead to production on a direct labor hour basis.The variable overhead efficiency variance

A) will be unfavorable.
B) will be favorable.
C) will depend upon the capacity measure selected to assign overhead to production.
D) is impossible to determine without additional information.