Regent,Inc

question 183

Multiple Choice

Regent,Inc.uses the following standard to produce a single unit of its product: overhead $6 (2 hrs.@ $3/hr.) .The flexible budget for overhead is $100,000 plus $1 per direct labor hour.Actual data for the month show overhead costs of $150,000,and 24,000 units produced.The overhead volume variance is:

• A)$10,000 favorable.
• B)$12,000 favorable.
• C)$4,000 unfavorable.
• D)$16,000 unfavorable.
• E)$36,000 unfavorable.