Oslund Company Manufactures Only One Product and Uses a Standard

Multiple Choice

Oslund Company manufactures only one product and uses a standard cost system.During the
Past month,the following variances were observed:
Oslund applies variable overhead using a standard rate of $20 per standard DLH allowed.During the month,Oslund used 20% more DLHs than the total standard hours for the units manufactured.
What were the total standard hours for the units manufactured?

A) 1,000.
B) 2,500.
C) 4,000.
D) 5,000.
E) 6,000