Answer the Following Questions Using the Information Below:
PlasticsRus Pty

question 62

Multiple Choice

Answer the following questions using the information below:
PlasticsRus Pty Ltd manufactured 100 000 buckets during February.The overhead cost-allocation base is $5.00 per machine-hour.The following variable overhead data pertain to February:
$$\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\\text { Production } & 100000 \text { units } & 100000 \text { units } \\\text { Machine-hours } & 9800 \text { hours } & 10000 \text { hours } \\\text { Variable overhead cost per machine-hour } & \$ 5.25 & \$ 5.00\end{array}$$
-What is the variable overhead spending variance?

• A)$1000 favourable
• B)$1450 unfavourable
• C)$2450 unfavourable
• D)None of these answers are correct.

---

Definitions:

Licensing

A trade agreement in which one company—the licensor—allows another company—the licensee—to use its company name, products, patents, brands, trade marks, raw materials, and/or production processes in exchange for a fee or royalty.

International Marketplace

A global economic environment that enables companies to buy and sell goods and services across national borders, subject to regulations and policies of the involved countries.