Redel Inc. has the following results for the current period. Fixed overhead Budget Actual $159735 $158283 Units produced 6685 100923 Direct labour hours 13370 94597 Fixed overhead is applied at $12 per direct labour hour. Variable overhead is applied at $27.50 per DHL. The standard hours per units is direct labour hours. Actual variable overhead was $340526. Which of the following amounts represents the variable overhead spending variance? (a negative number implies an unfavorable variance) select one: a. 2949347.50. b. -2949347.50. c. -2260891.50. d. 2260891.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...
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Redel inc. Has the following solve this general accounting question

Redel Inc. has the following results for the current period.
Fixed overhead
Budget Actual
$159735 $158283
Units produced
6685
100923
Direct labour hours 13370
94597
Fixed overhead is applied at $12 per direct labour hour. Variable
overhead is applied at $27.50 per DHL. The standard hours per units is
direct labour hours. Actual variable overhead was $340526.
Which of the following amounts represents the variable overhead
spending variance? (a negative number implies an unfavorable variance)
select one:
a. 2949347.50.
b. -2949347.50.
c. -2260891.50.
d. 2260891.
Transcribed Image Text:Redel Inc. has the following results for the current period. Fixed overhead Budget Actual $159735 $158283 Units produced 6685 100923 Direct labour hours 13370 94597 Fixed overhead is applied at $12 per direct labour hour. Variable overhead is applied at $27.50 per DHL. The standard hours per units is direct labour hours. Actual variable overhead was $340526. Which of the following amounts represents the variable overhead spending variance? (a negative number implies an unfavorable variance) select one: a. 2949347.50. b. -2949347.50. c. -2260891.50. d. 2260891.
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