View the step-by-step solution to:

# Xero Company's standard factory overhead rate is \$3.75 per direct labor hour (DLH), calculated at 90% capacity = 900 standard DLHs.

Xero Company's standard factory overhead rate is \$3.75 per direct labor hour (DLH), calculated at 90% capacity = 900 standard DLHs. In December, the company operated at 80% of capacity, or 800 standard DLHs. Budgeted factory overhead at 80% of capacity is \$3,150, of which \$1,350 is fixed overhead. For December, the actual factory overhead cost was \$3,800 for 840 actual DLHs, of which \$1,300 was for fixed factory overhead. Assuming the use of a two-way breakdown (decomposition) of the total overhead variance, what is the factory overhead efficiency variance for December?

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents