Adams Co Uses the Following Standard to Produce a Single Unit

question 157

Multiple Choice

Adams Co. uses the following standard to produce a single unit of its product: variable overhead (2 hrs. @ $3/hr.) $6. Actual data for the month show variable overhead costs of $150,000, and 24,000 units produced. The total variable overhead variance is:

• A) $6,000F.
• B) $6,000U.
• C) $78,000U.
• D) $78,000F.
• E) $0.

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