Security Doors Has a Standard Variable Overhead Rate of $4

question 18

Multiple Choice

Security Doors has a standard variable overhead rate of $4 per direct labour hour. The standard quantity of direct labour per unit of production is 3 hours. The company's static budget was based on 50 000 units. Actual results for the year are as follows.
What was Security Door's variable overhead spending variance?

• A) $45 000 favourable
• B) $60 000 favourable
• C) $15 000 unfavourable
• D) $45 000 unfavourable

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Definitions:

Rectus Abdominis

A long muscle running from the pubis to the rib cage, involved in flexing the lumbar spine and stabilizing the pelvis and lower back.

External Oblique

A muscle located on the lateral and anterior part of the abdomen, playing a crucial role in the movement and support of the trunk.

Internal Oblique

A muscle in the abdominal wall that assists in rotating and side-bending the trunk.

Coracobrachialis

A muscle in the shoulder that aids in flexing and adducting the arm.