Question 23
Kennedy Manufacturing produces a single product. The standard cost card for the product follows:
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Points out of 3
Direct materials (4 yards \times $5 per yard).
$20
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Direct labor (1.5 hours \times $10 per hour).
$15
Variable manufacturing overhead (1.5 hrs \times $4 per hour)
$6
During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given befor
Direct materials purchased (6,000 yards)
$28,500
Direct materials used in production
5.000 yards
Direct labor cost incurred (2,100 hours).
$17.850
Variable manufacturing overhead cost incurred.
$10,080
The company records all variances at the earliest possible point in time. Variable manufacturing overhead costs are applied to products on the basis of standards
hours.
The variable overhead efficiency variance for the period is
Select one:
a. $1,200 U
b. $1,440 U
c. $1,200 F
d. $1,440 F
