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Exhibit 19-7 the Following Figures Represent 100% Capacity for Starr

Question 118

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Exhibit 19-7 The following figures represent 100% capacity for Starr Manufacturing:
Exhibit 19-7 The following figures represent 100% capacity for Starr Manufacturing:   Starr Manufacturing normally produces at 100% capacity. During the month of October, the company started and completed 10,000 units of product, using variable manufacturing overhead costs of $20,000. The company used 6,400 direct labor hours in October instead of the 6,000 hours expected for the activity level achieved. -Refer to Exhibit 19-7. Based on the information above, the variable manufacturing overhead spending variance is: A)  $2,000 favorable B)  $2,000 unfavorable C)  $800 favorable D)  $800 unfavorable Starr Manufacturing normally produces at 100% capacity. During the month of October, the company started and completed 10,000 units of product, using variable manufacturing overhead costs of $20,000. The company used 6,400 direct labor hours in October instead of the 6,000 hours expected for the activity level achieved.
-Refer to Exhibit 19-7. Based on the information above, the variable manufacturing overhead spending variance is:


A) $2,000 favorable
B) $2,000 unfavorable
C) $800 favorable
D) $800 unfavorable

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