Atkinson Landscaping
Atkinson Landscaping Applies Variable Overhead Based on Direct

question 78

Multiple Choice

Atkinson Landscaping
Atkinson Landscaping applies variable overhead based on direct labour hours. At the beginning of the current year, Atkinson had estimated the following:
$\begin{array}{lr}\text { Estimated variable overhead } & \$ 56000 \\\text { Estimated units of production } & 10000 \text { units } \\\text { Standard direct labour hours per unit } & 2.5 \text { hours }\end{array}$
During the year, 11 000 units were produced using a total of 27 200 direct labour hours and actual overhead costs were $60 000.
-Atkinson's variable overhead spending variance for the year was:

• A) $ 672 F
• B) $ 928 F
• C) $4000 U
• D) $ 145 U

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