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Budgeted Variable Overhead for the Year Is $120,000

Question 107

Multiple Choice

Budgeted variable overhead for the year is $120,000. Expected activity is 20,000 standard direct labor hours. The actual hours worked were 18,000 and the standard hours allowed for actual production were 19,500. The variable overhead efficiency variance is


A) $0.
B) $12,000 F.
C) $3,000 F.
D) $9,000 F.
E) None of these.

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