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R&N Manufacturing Produces Music Boxes

Question 148

Multiple Choice

R&N Manufacturing produces music boxes.This year's budget was based on the production of 3,000 music boxes using a standard of 3 direct labor hours per music box and $4 variable overhead per direct labor hour.R&N incurred 9,200 hours to produce 2,950 music boxes.If actual variable overhead for the year is $32,000,what is R&N's variable overhead spending variance?


A) $4,000 favorable
B) $4,000 unfavorable
C) $4,800 favorable
D) $4,800 unfavorable

Correct Answer:

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