Solved

Wendy Wall (WW)makes Wall Units

Question 6

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents