Luke,IncHas a Standard Variable Overhead Rate of $5 Per Machine

question 51

Multiple Choice

Luke,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 Luke's actual variable overhead during the period?

• A)$262,500.
• B)$280,500.
• C)$304,500.
• D)$322,500.
• E)Some other amount.

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Definitions:

Business Messages

Communication in a corporate setting, aimed at sharing information, making requests, or giving directives within or outside the company.

Conversational Language

A relaxed and informal language style similar to everyday spoken dialogue, often used in personal communications or to create a friendly tone in writing.

Goodwill

The positive reputation and brand value that a business acquires beyond its tangible assets, often affecting customer loyalty and market value.

Courtesy

The display of politeness, respect, and consideration for others in behavior and communication.