Wendy Wall (WW) makes wall units.For the year,the following details have been budgeted.Output,10,000 units;factory overhead $1,250,000,of which 60% is variable.Each wall unit should take 2.5 hours of direct labor to produce.WW produced 9,500 units with 24,000 DLH used and $1,175,000 actual overhead was incurred.Overhead is allocated based on direct labor hours (DLH) . What is Wendy's total overhead variance?
A) $75,000 over absorbed
B) $12,500 over absorbed
C) $12,500 under absorbed
D) $25,000 over absorbed
E) None of the choices are correct
Correct Answer:
Verified
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