Russo corporation manufactured 22,000 air conditioners during November. The overhead cost allocation base is $30.50 per machine hour. The following variable overhead data pertain to November: Actual Budgeted Production 22,000 units 24,000 units Machine-hours 15,675 hours 16,800 hours Variable overhead cost per machine hour $30 $30.50 What is the variable overhead spending variance? A. $7,837.5 unfavorable B. $7,837.50 favorable C. $8,400.00 favorable D. $8400.00 unfavorable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Russo corporation manufactured
22,000 air conditioners during
November. The overhead cost
allocation base is $30.50 per machine
hour. The following variable overhead
data pertain to November:
Actual Budgeted
Production 22,000 units 24,000 units
Machine-hours 15,675 hours 16,800
hours
Variable overhead cost per machine
hour $30 $30.50
What is the variable overhead
spending variance?
A. $7,837.5 unfavorable
B. $7,837.50 favorable
C. $8,400.00 favorable
D. $8400.00 unfavorable
Transcribed Image Text:Russo corporation manufactured 22,000 air conditioners during November. The overhead cost allocation base is $30.50 per machine hour. The following variable overhead data pertain to November: Actual Budgeted Production 22,000 units 24,000 units Machine-hours 15,675 hours 16,800 hours Variable overhead cost per machine hour $30 $30.50 What is the variable overhead spending variance? A. $7,837.5 unfavorable B. $7,837.50 favorable C. $8,400.00 favorable D. $8400.00 unfavorable
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