Tycoon Manufacturing Uses a Standard Costing System The Variable Overhead Efficiency Variance Was:
A) $4,500 U
B)

Tycoon Manufacturing uses a standard costing system. The standard time to produce one unit is 4 hours, and normal production is 5,000 units monthly. Overhead costs were estimated to be $250,000. The standard variable overhead rate is $5 per machine hour. During October the following results were recorded:
$\begin{array} { l l } \text { Units produced } & 4,900 \\\text { Units sold } & 4,600 \\\text { Machine hours required } & 20,500 \\\text { Actual overhead cost } & \$ 248,000\end{array}$
The variable overhead efficiency variance was:

A) $4,500 U
B) $3,000 F
C) $0
D) $3,000 U

Correct Answer:

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