Problem: Petunia Company gathered the following data for last year's operations:
Units produced - 60,000
Direct labour - 30,000 hours @ $9. 00 per hour
Actual variable overhead - $150,000
The company employs a standard costing system. During the year, a variable overhead rate of $4.50 per hour was used. The labour standard requires a half hour per unit produced.
Refer to Petunia Company. What is the variable overhead efficiency variance?
Question options:
- $0
- $7,500 U
- $10,000 F
- $15,000 F