Actual results for the year follow. Actual units produced: 42,000 Actual machine hours worked: 120,000 Actual variable overhead incurred: $520,000 Admac's variable-overhead spending variance is: Multiple Choice O $20,000 favorable. $20,000 unfavorable. $27,000 favorable. $27,000 unfavorable. None of the answers is correct.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Admac Technologies has a standard variable overhead rate of $4.50 per machine hour, and each unit produced has a standard time allowed of three hours. The company's static budget was based on 46,000 units.
Actual results for the year follow.
Actual units produced: 42,000
Actual machine hours worked: 120,000
Actual variable overhead incurred: $520,000
Admac's variable-overhead spending variance is:
Multiple Choice
$20,000 favorable.
$20,000 unfavorable.
$27,000 favorable.
$27,000 unfavorable.
None of the answers is correct.
Transcribed Image Text:Admac Technologies has a standard variable overhead rate of $4.50 per machine hour, and each unit produced has a standard time allowed of three hours. The company's static budget was based on 46,000 units. Actual results for the year follow. Actual units produced: 42,000 Actual machine hours worked: 120,000 Actual variable overhead incurred: $520,000 Admac's variable-overhead spending variance is: Multiple Choice $20,000 favorable. $20,000 unfavorable. $27,000 favorable. $27,000 unfavorable. None of the answers is correct.
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