Question - 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