please show work. thanks. 16 Lavender Company produces several produets in its f

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please show work. thanks.

16 Lavender Company produces several produets in its factory, ncladimg a karate tobe. The conpany uses a stanband son system. According to the standards that have been set for the tobes, the factory should work 780 direet inhor twoirs cveb month and produce 1,950 robes. Certain standard costs associated with this level of prout re as ToWow Tonal 57,020 52,340 Per wnit of Produe S3 60 Direct labor Variable manufacturing overhead (based on DLH) S1 20 housandprodaced2 100 9,1 During April, the factory worked 760 direcr labor hours and p The following certain actual costs were recorded during the month: Total $3,800 Per unit of Product S1.90 Variable manufacturing overhead Speriding variance for Direct Labor The variable overhead efficiency v A. S120 Unfavorable B S120 Favorable 400 C 240 Unfavorable D S240 Favorable E. None of the above ion us the step-down method to allocate service depariment costs to operating departments. The Physical Plant, and two operating departments, Sales aw

Explanation / Answer

Standard DLH per unit=780/1950= 0.4 Standard variable overhead rate per DLH=1.2/0.4= $3 Variable overhead efficiency variance=3*(760-2100*0.4)= $240 Favorable Option D is correct

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