Question

ABC Company has set the following variable overhead standards
for its single product:

                     standard hours        standard rate 
variable overhead    6 hours per unit      $8.25 per hour

During June, 4,400 units of this product were produced using
28,400 direct labor hours and incurring a total of $245,000
in variable manufacturing overhead cost.

Calculate the variable overhead efficiency variance for June. If
the variance is favorable, place a minus sign in front of your
answer (i.e., -5000). If the variance is unfavorable, enter your
answer as a number (i.e., 5000).

Answer 1

Step 1: Calculation of Standard hours:

Step 2: Calculation of variable overhead efficiency variance:

All the best...