Ketone Inc

question 6

Multiple Choice

Ketone Inc.produces small engines.For last year's operations, the following data were gathered: Ketone Inc.employs a standard costing system.During the year, a variable overhead rate of $5.00 was used.The labor standard requires 1 hour per unit produced.The variable overhead spending and efficiency variances are:

• A) $176,000 U and $19,000 U.
• B) $150,000 U and $24,000 F.
• C) $400,000 U and $50,000 U.
• D) $200,000 U and $40,000 F.
• E) None of these

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Definitions:

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