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Regent,Inc

Question 44

Multiple Choice

Regent,Inc.uses the following standard to produce a single unit of its product: overhead $6 (2 hrs.@ $3/hr. ) .The flexible budget for overhead is $100,000 plus $1 per direct labor hour.Actual data for the month show overhead costs of $150,000,and 24,000 units produced.The overhead volume variance is:


A) $10,000 favorable.
B) $12,000 favorable.
C) $4,000 unfavorable.
D) $16,000 unfavorable.
E) $36,000 unfavorablE.

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