The Following Standards for Variable Manufacturing Overhead Have Been Established $\quad$

question 51

Multiple Choice

The following standards for variable manufacturing overhead have been established for a company that makes only one product:Standard hours per unit of output $\quad$$\quad$ 7.0 hours
Standard variable overhead rate $\quad$$\quad$ £ 11.35 per hour
The following data pertain to operations for the last month: $\begin{array}{ll}\text { Actual hours } & 7,500 \text { hours } \\\text { Actual total variable overhead cost } & £ 87,000 \\\text { Actual output } & 1,000 \text { units }\end{array}$
- What is the variable overhead spending variance for the month

• A)£7,550 F
• B)£7,550 U
• C)£1,875 F
• D)£1,875 U

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