A company uses a standard costing system. At the end of the current year, the company provides the following overhead information: Actual overhead incurred: | | | Variable | $ 90,000 | | Fixed | $ 62,000 | Budgeted fixed overhead | $ 65,000 | Variable overhead rate (per direct labor hour) | $ 8 | Standard hours allowed for actual production | 12,000 | Actual labor hours used | 11,000 |
What amount is the variable overhead efficiency variance?
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a. | $6,000 favorable. | |
b. | $2,000 unfavorable. | |
c. | $8,000 favorable. | |
d. | $8,000 unfavorable. |
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