Luka Company Uses the Following Overhead Standard Costs for a Single

Multiple Choice

Luka Company uses the following overhead standard costs for a single unit of product: 7.5 hours at $13.50 per hour.Actual data for the month showed overhead costs of $132,000 for 1,800 units produced.What is the difference between actual overhead costs and standard overhead costs allocated to products?

A) $107,700 favorable
B) $107,700 unfavorable
C) $50,250 favorable
D) $50,250 unfavorable