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Fabian Fabrication machines heavy-duty brake rotors t



Fabian Fabrication machines heavy-duty brake rotors that are used on commercial airliners.

Fabian's management developed the following standard costs:


Standard direct labor hours per rotor: 2.40

Standard overhead rate per direct labor hour: $11.25


Actual activity for October-

Actual overhead costs incurred: $136,800

Actual direct labor hours: 11,400

Actual rotors machined: 4,100


What is the variable manufacturing overhead efficiency variance in October?


A) $8,550 favorable

B) $17,550 unfavorable

C) $8,550 unfavorable

D) $17,550 favorable

 


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Apr 19, 2020

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