Adams Co.uses the following standard to produce a single unit of its product:
Variable overhead (2 hrs.@ $3/hr.)= $ 6
Actual data for the month show variable overhead costs of $150,000 based on 24,000 units of production.The total variable overhead variance is:
A) $6,000F
B) $6,000U
C) $78,000U
D) $78,000F
E) $0

Question

Quizplus · Accepted Answer

Total variance overhead variance = $150,000 (actual) - (24,000 x $6 budgeted)
$150,000 = $144,000 = $6,000 unfavorable

Adams Couses the Following Standard to Produce a Single Unit of of Its