Use the following information to answer Questions below.
Landreth Fencing considers 3,000 direct labor hours or 50 fences to be its normal monthly capacity. Its standard variable overhead rate is $12 per direct labor hour. During the current month, $29,800 of variable overhead costs were incurred in working 2,950 direct labor hours to complete 45 fences.
-What is the total variable overhead flexible budget variance?
A) $2,600 F
B) $6,800 F
C) $5,000 U
D) $8,600 U
E) None of the above
Correct Answer:
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