Solved

The Following Standards for Variable Manufacturing Overhead Have Been Established

Question 62

Multiple Choice

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

 Standard hours per unit of output 1.6 hours  Standard variable overhead rate $11.55 per hour  The following data pertain to operations for the last month:  Actual hours 4,900 hours  Actual total variable overhead cost $58,310 Actual output 3,000 units \begin{array}{l}\begin{array} { | l | r | } \hline \text { Standard hours per unit of output } & 1.6 \text { hours } \\\hline \text { Standard variable overhead rate } & \$ 11.55 \text { per hour } \\\hline\end{array}\\\text { The following data pertain to operations for the last month: }\\\begin{array} { | l | r | } \hline \text { Actual hours } & 4,900 \text { hours } \\\hline \text { Actual total variable overhead cost } & \$ 58,310 \\\hline \text { Actual output } & 3,000 \text { units } \\\hline\end{array}\end{array}
-What was the variable overhead spending variance for the month?


A) $1,715 favourable.
B) $1,715 unfavourable.
C) $2,870 favourable.
D) $2,870 unfavourable.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents