Hope, Inc Has a Standard Variable Overhead Rate of $4 Per

question 86

Multiple Choice

Hope, Inc. has a standard variable overhead rate of $4 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 variable overhead: $210,000
Variable-overhead efficiency variance: $18,000U
Variable-overhead spending variance: $30,000F
How many units did Hope actually produce during the period?

• A) 13,500.
• B) 16,500.
• C) 18,500.
• D) 21,500.
• E) None of the answers is correct.

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Definitions:

Overhead Applied

The amount of indirect costs allocated to goods and services based on a predetermined rate.