Messenger, Inc

Multiple Choice

Messenger, Inc.has a standard variable overhead rate of $5 per machine hour, with each completed unit expected to take three machine hours to produce.A review of the company's accounting records found the following: Actual production: 19,500 units Variable-overhead efficiency variance: $9,000U Variable-overhead spending variance: $21,000F What was Messenger's actual variable overhead during the period?

A) $262,500.
B) $280,500.
C) $304,500.
D) $322,500.
E) None of the answers is correct.