Fluorspar Company's standard variable overhead rate is $4.00 per direct labor hour, and each unit requires 3 standard direct labor hours.During March, Fluorspar recorded 3,000 actual direct labor hours, $40,000 actual variable overhead costs, and 2,500 units of product manufactured.
What is the total variable overhead variance for March for Fluorspar?
A) $14,000 U
B) $6,000 U
C) $8,000 U
D) $10,000 U

Question

Fluorspar Company's standard variable overhead rate is $4.00 per direct labor hour, and each unit requires 3 standard direct labor hours.During March, Fluorspar recorded 3,000 actual direct labor hours, $40,000 actual variable overhead costs, and 2,500 units of product manufactured. ​
What is the total variable overhead variance for March for Fluorspar?
A) $14,000 U
B) $6,000 U
C) $8,000 U
D) $10,000 U

Quizplus · Accepted Answer

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Fluorspar Company's Standard Variable Overhead Rate Is $4