The LAH Company Produces Product BG,which Includes Variable Overhead Standard $$\begin{array} { l r } \text { Production } & 3,100 \\\text { Hours incurred } & 16,000 \\\text { Variable overhead } & £ 235,00\end{array}$$

question 9

Multiple Choice

The LAH company produces product BG,which includes variable overhead standard cost of 5 hours at £15 per hour,based on a budget production of 3,000 units.The actual results for the last period were as follows:
$$\begin{array} { l r } \text { Production } & 3,100 \\\text { Hours incurred } & 16,000 \\\text { Variable overhead } & £ 235,00\end{array}$$
Calculate the variable overhead cost variance.

• A) £5,000 favorable
• B) £5,000 adverse
• C) £7,500 favorable
• D) £7,500 adverse

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Definitions:

Laboratory Studies

Controlled experiments conducted in a lab setting to explore hypotheses and examine variables in a controlled environment.

Cause-Effect Relationships

The concept that every event (cause) leads to a consequence (effect), forming the basis of rational analysis and experimental processes.

Correlational Studies

Research methodologies that examine the relationship between two or more variables to determine whether a correlation exists.

Cause-Effect Relationships

The principle that an action or event (cause) will produce a certain response or outcome (effect).