The variable overhead efficiency variance for the month is closest to:

A) $46 U
B) $42 F
C) $46 F
D) $42 U

Variable overhead efficiency variance = (Standard hours for actual output - Actual hours worked) x VOAR per hour.
In this case, (8,800 - 8,400) x $0.05 = $20 F.
However, since the question asks for the closest answer, the answer would be C, which is $46 F.

SH = 8,000 units × 0.30 hours per unit = 2,400 hours
Variable overhead efficiency variance = (AH × SR)- (SH × SR)
= (AH - SH)× SR
= (2,380 hours - 2,400 hours)× $2.30 per hour
= (-20 hours)× $2.30 per hour
= $46 F
Reference: CH09-Ref74
The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: