Dance Company Has a Standard Variable Overhead Rate of $4

question 15

Multiple Choice

Dance Company has a standard variable overhead rate of $4.50 per machine hour, and each unit produced has a standard time allowed of three hours. The company's static budget was based on 46,000 units. Actual results for the year follow: Actual units produced: 42,000
Actual machine hours worked: 120,000
Actual variable overhead incurred: $520,000
Dance's variable-overhead spending variance is:

• A)$9,200 favourable.
• B)$20,000 favourable.
• C)$20,000 unfavourable.
• D)$27,000 favourable.
• E)$27,000 unfavourable.

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