Messenger, Inc. has a standard variable overhead rate of $5 per machine hour, with each completed unit expected to take three machine hours to produce. A review of the company's accounting records found the following:
Actual production: 19,500 units
Variable-overhead efficiency variance: $9,000U
Variable-overhead spending variance: $21,000F
What was Messenger's actual variable overhead during the period?
A) $262,500.
B) $280,500.
C) $304,500.
D) $322,500.
E) None of the answers is correct.

Question

Quizplus · Accepted Answer

The Answer of Messenger, Inc. has a standard variable overhead rate of $5 per machine hour, with each completed unit expected to take three machine hours to produce. A review of the company's accounting records found the following:
Actual production: 19,500 units
Variable-overhead efficiency variance: $9,000U
Variable-overhead spending variance: $21,000F
What was Messenger's actual variable overhead during the period?
A) $262,500.
B) $280,500.
C) $304,500.
D) $322,500.
E) None of the answers is correct.