Answer:
the variable overhead efficiency variance is -$63,450
Explanation:
The computation of the variable overhead efficiency variance is shown below:
= (Standard hours - actual hours) × standard rate
= (27,000 units × 7,800 ÷ 26,000) - 13,500) × $11.75
= (8,100 hours - 13,500 hours) × $11.75
= -$63,450
Hence, the variable overhead efficiency variance is -$63,450
The same is to be considered by applying the above formula
