Final answer:
The student's question is about calculating the unfavorable variable overhead efficiency variance, which is found to be $3,000 due to labor hours exceeding the standard for actual production.
Step-by-step explanation:
The student's question involves calculating the unfavorable variable overhead efficiency variance. Given the standard direct labor hours per unit, actual direct labor hours used, number of units produced, standard variable overhead per standard direct labor hour, and the actual variable overhead, the variance can be calculated as follows:
Calculate the standard direct labor hours for actual production: 2 hours/unit × 5,000 units = 10,000 hours.
Compute the standard variable overhead for actual production: $3/hour × 10,000 hours = $30,000.
Compare the standard variable overhead to actual variable overhead: $30,000 (standard) - $28,000 (actual) = $2,000 favorable. However, we need to focus on the actual hours worked which are higher than standard hours.
Point out that the efficiency variance is based on the difference in hours, not cost: (10,500 hours (actual) - 10,000 hours (standard)) × $3/hour = $1,500 unfavorable.
The correct answer is Option 3: $3,000 which represents the unfavorable variable overhead efficiency variance due to labor hours being more than the standard for the actual production.