The following standards for variable manufacturing overhead have been established for a company that makes only one product: standard hours per unit of output 3.5 hours standard variable overhead rate $ 15.20 per hour the following data pertain to operations for the last month: actual hours 3,800 hours actual total variable manufacturing overhead cost $ 59,090 actual output 800 units what is the variable overhead efficiency variance for the month?

$15,200 favorable

Explanation:

The formula to compute the variable overhead efficiency variance is shown below:

= (Actual direct labor hours - standard direct labor hours) × variable overhead per hour

where,  

Actual direct labor hours is 3,800 hours

And, the standard direct labor hours equal to

= 800 units × 3.5

= 2,800 hours

Standard variable overhead rate $ 15.20 per hour

Now put these values to the above formula  

So, the value would equal to

= (3,800 hours - 2,800 hours) × $15.20

= $15,200 favorable

hello the answer is d

answer///supply is elastic, and demand is inelastic;