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  • 42.

    The variable overhead efficiency variance for May is

    • a.

      $350 F

    • b.

      $350 U

    • C.

      $280 U

    • d.

      $280 F

Standard hours = Standard hours per unit × Actual output = 0.2 × 1,500 = 300 Variable overhead efficiency variance = Standard rate × (Actual hours - Standard hours) = $7 × (340 - 300) = $280 unfavorable

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