Fletcher Company Collected the Following Data Regarding Production of One

question 45

Multiple Choice

Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance. $\begin{array}{lll}\text { Direct labor stendard (2 hrs. @ } \$ 12.75 / \mathrm{hr} \text {.) } & \$ 5.50 &\text {per finished unit}\\\text { Actual direct labor hours } & 81,500&\text { hrs}\\\text { Budgeted units } & 42,000&\text {units}\\\text {Actual finished units produced}&40,000&\text {units}\\\text {Standad variable OH rate (2 hrs. @ \$14.30/hr) }&\$28.60&\text {per finished unit}\\\text {Standard fixed OH rate \( (\$ 336,000 / 42,000 \) units) }&\$8.00 &\text {per unit}\\\text {Actual cost of variable overhead costs incurred}&\$1,140,000\end{array}$ Actual cost of fixed overhead costs incurred $ 338,000

• A) $18,000 unfavorable.
• B) $18,300 favorable.
• C) $14,300 unfavorable.
• D) $4,000 favorable.
• E) $18,000 favorable.

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Definitions:

Social Variable

An element that can vary among individuals within a society, such as income, education level, or age, influencing behaviors and social outcomes.