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Commodore Company Commodore Company Uses a Standard Cost System for Its Production

Question 45

Multiple Choice

Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:

 Standard:  
 DLH per unit 3.00
 Variable overhead per DLH    $1.80
 Fixed overhead per DLH  $3.25
 Budgeted variable overhead $27,250
 Budgeted fixed overhead $49,500
 Actual:  
 Direct labor hours   16,000
 Variable overhead $31,325
 Fixed overhead $49,750

Refer to Commodore Company.Using the three-variance approach,what is the efficiency variance?


A) $1,800 F
B) $1,800 U
C) $2,050 U
D) $2,550 F

Correct Answer:

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