# Pippin Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 5.0 grams $7.00 per gram Direct labor 0.30 hours$21.30 per hour Variable manufact

###### Question:

Pippin Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate
Direct materials 5.0 grams $7.00 per gram Direct labor 0.30 hours$21.30 per hour
Variable manufacturing overhead 0.30 hours $9.60 per hour The company has reported the following actual results for the product for June: Actual output 8,500 units Raw materials purchased 48,100 grams Actual price of raw materials$7.70 per gram
Raw materials used in production 42,490 grams
Actual direct labor-hours 2,300 hours
Actual direct labor rate $21,70 per hour Actual variable overhead rate$9.80 per hour
The variable overhead efficiency variance for the month is closet to:_________.
a. $2,450 F b.$2,400 U
c. $2,400 F d.$2,450 U

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