The following information pertains to Roe Co,'s 2014 manufacturing operations:
Standard direct manufacturing labor hours per
unit -----------------------------------------------------------------------2
Actual direct manufacturing labor hours-------------10,500
Number of units produced ---------------------------------5,000
Standard variable overhead per standard direct
manufacturing labor hour---------------------------------------$3
Actual variable overhead ----------------------------------$28,000
Roe's 2014 unfavorable variable overhead efficiency variance was
a. $0
b. $1,500
c. $2,000
d. $3,500
Answer: B
CPA Exam
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