Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance. $\begin{array}{lll}
\text { Direct labor stendard (2 hrs. @ } \$ 12.75 / \mathrm{hr} \text {.) } & \$ 5.50 &\text {per finished unit}\
\text { Actual direct labor hours } & 81,500&\text { hrs}\
\text { Budgeted units } & 42,000&\text {units}\
\text {Actual finished units produced}&40,000&\text {units}\
\text {Standad variable OH rate (2 hrs. @ \$14.30/hr)}&\$28.60&\text {per finished unit}\
\text {Standard fixed OH rate $ (\$ 336,000 / 42,000 $ units)}&\$8.00 &\text {per unit}\
\text {Actual cost of variable overhead costs incurred}&\$1,140,000
\end{array}$ Actual cost of fixed overhead costs incurred $ 338,000
A) $18,000 unfavorable.
B) $18,300 favorable.
C) $14,300 unfavorable.
D) $4,000 favorable.
E) $18,000 favorable.

Question

Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance. $\begin{array}{lll}
\text { Direct labor stendard (2 hrs. @ } \$ 12.75 / \mathrm{hr} \text {.) } & \$ 5.50 &\text {per finished unit}\
\text { Actual direct labor hours } & 81,500&\text { hrs}\
\text { Budgeted units } & 42,000&\text {units}\
\text {Actual finished units produced}&40,000&\text {units}\
\text {Standad variable OH rate (2 hrs. @ \$14.30/hr)}&\$28.60&\text {per finished unit}\
\text {Standard fixed OH rate $ (\$ 336,000 / 42,000 $ units)}&\$8.00 &\text {per unit}\
\text {Actual cost of variable overhead costs incurred}&\$1,140,000
\end{array}$  Actual cost of fixed overhead costs incurred $ 338,000
A) $18,000 unfavorable.
B) $18,300 favorable.
C) $14,300 unfavorable.
D) $4,000 favorable.
E) $18,000 favorable.

Quizplus · Accepted Answer

The Answer of Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance. $\begin{array}{lll}
\text { Direct labor stendard (2 hrs. @ } \$ 12.75 / \mathrm{hr} \text {.) } & \$ 5.50 &\text {per finished unit}\
\text { Actual direct labor hours } & 81,500&\text { hrs}\
\text { Budgeted units } & 42,000&\text {units}\
\text {Actual finished units produced}&40,000&\text {units}\
\text {Standad variable OH rate (2 hrs. @ \$14.30/hr)}&\$28.60&\text {per finished unit}\
\text {Standard fixed OH rate $ (\$ 336,000 / 42,000 $ units)}&\$8.00 &\text {per unit}\
\text {Actual cost of variable overhead costs incurred}&\$1,140,000
\end{array}$  Actual cost of fixed overhead costs incurred $ 338,000
A) $18,000 unfavorable.
B) $18,300 favorable.
C) $14,300 unfavorable.
D) $4,000 favorable.
E) $18,000 favorable.

Fletcher Company Collected the Following Data Regarding Production of One