HSS Company provides security services to senior executives of prominent corporations when they travel outside the United States. HSS applies both fixed and variable overhead using direct labor hours. The annual budget for one if its customers is as follows: Budgeted hours Direct labor Variable overhead Fixed overhead 800 hours $50.00 per hr. $30.00per hr. $15.00 per hr. During the year, HSS had the following activity related to this customer: Actual hours were 850 at a total cost of $44,200. Actual fixed overhead was $12,750. Actual variable overhead was $22,950. What is the Variable Overhead Flexible Budget Variance? Select one: O a. $1,050 favorable O O O b. $1,050 unfavorable c. $2,550 favorable d. $2,550 unfavorable

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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HSS Company provides security services to senior executives of prominent corporations when they travel outside the United States. HSS applies both fixed and variable overhead using
direct labor hours. The annual budget for one if its customers is as follows:
Budgeted hours
Direct labor
Variable overhead
Fixed overhead
800 hours
$50.00 per hr.
$30.00per hr.
$15.00 per hr.
During the year, HSS had the following activity related to this customer:
Actual hours were 850 at a total cost of $44,200.
Actual fixed overhead was $12,750.
Actual variable overhead was $22,950.
What is the Variable Overhead Flexible Budget Variance?
Select one:
O a. $1,050 favorable
O
O
O
b. $1,050 unfavorable
c. $2,550 favorable
d. $2,550 unfavorable
Transcribed Image Text:HSS Company provides security services to senior executives of prominent corporations when they travel outside the United States. HSS applies both fixed and variable overhead using direct labor hours. The annual budget for one if its customers is as follows: Budgeted hours Direct labor Variable overhead Fixed overhead 800 hours $50.00 per hr. $30.00per hr. $15.00 per hr. During the year, HSS had the following activity related to this customer: Actual hours were 850 at a total cost of $44,200. Actual fixed overhead was $12,750. Actual variable overhead was $22,950. What is the Variable Overhead Flexible Budget Variance? Select one: O a. $1,050 favorable O O O b. $1,050 unfavorable c. $2,550 favorable d. $2,550 unfavorable
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