Admac Technologies Has a Standard Variable Overhead Rate of $4

Multiple Choice

Admac Technologies has a standard variable overhead rate of $4.50 per machine hour, and each unit produced has a standard time allowed of three hours.The company's static budget was based on 46,000 units.Actual results for the year follow. Actual units produced: 42,000 Actual machine hours worked: 120,000 Actual variable overhead incurred: $520,000 Admac's variable-overhead spending variance is:

A) $20,000 favorable.
B) $20,000 unfavorable.
C) $27,000 favorable.
D) $27,000 unfavorable.
E) None of the answers is correct.