The Laramie Corporation manufactures Product X that consumes a large amount of overhead.For the month of October Laramie produced 15,250 units of Product X and incurred actual overhead costs of $375,000.The standard costs developed for Product X by Laramie follow:

What was the total variable overhead variance for Product X in October?

Question

The Laramie Corporation manufactures Product X that consumes a large amount of overhead.For the month of October Laramie produced 15,250 units of Product X and incurred actual overhead costs of $375,000.The standard costs developed for Product X by Laramie follow:

What was the total variable overhead variance for Product X in October?

Quizplus · Accepted Answer

A)
Actual overhead $375,000
Standard overhead (15,250 × 6 × $5.50)503,250
Difference 128,250 F

The Laramie Corporation Manufactures Product X That Consumes a Large