Franklin Glass Works Uses a Standard Cost System in Which

question 79

Multiple Choice

Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at $900,000 for the year, and the fixed manufacturing overhead rate was $1.50 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below:
-Franklin's variable overhead rate variance for the year is:

• A)$20,000 unfavorable
• B)$22,000 favorable
• C)$22,000 unfavorable
• D)$20,000 favorable

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Definitions:

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Pretending

The act of giving a false appearance or pretending to possess certain qualities or characteristics.

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