Mason, Inc

Multiple Choice

Mason, Inc. uses a standard costing system. Overhead costs are allocated based on direct labour hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labour hour, respectively. Data relevant for the current period include: The variable overhead spending variance is:

A) $930 Favourable
B) $2,070 Unfavourable
C) $33,000 Unfavourable
D) $3,300 Unfavourable