EXERCISE 10-11 (CONTINUED)

5,750 hours ($3.80 per hour* – $4.00 per hour) = $1,150 F *$21,850 ÷ 5,750 hours = $3.80 per hour Variable overhead efficiency variance = SR (AH – SH) $4.00 per hour (5,750 hours – 6,000 hours) = $1,000 F