The Following Standards for Variable Manufacturing Overhead Have Been Established

question 137

Multiple Choice

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

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

---

Definitions:

Depression

A psychological disorder defined by a constant state of depression or apathy towards activities, severely affecting one's day-to-day life.

Aggression

Actions aimed at causing harm or instilling fear in others, including physical aggression, spoken words, or silent forms of intimidation.

Chinese

Relating to China, its people, languages, or culture.

Canadian

Refers to something related to Canada, including its culture, people, or geography.