Chapter 21, Problem 4MCQ

A Company’s standard for a unit of its single product is $6 per unit in variable overhead (4 hour x $1.50 per hour). Actual data for the period show variable overhead costs of $150.000 and production of 24.000 units. Its total variable overhead cost variance is

a. $6.000 F.

b. $6.000 U.

c. $114,000 U.

d. $114.000 F.

e. So.