Shorts, Inc

Multiple Choice

Shorts, Inc. produces small engines. For last year's operations, the following data were gathered: Shorts, Inc. employs a standard costing system. During the year, a variable overhead rate of $8.00 was used. The labor standard requires 1.5 hours per unit produced. The variable overhead spending and efficiency variances are, respectively

A) $100,000 U and $20,000 U.
B) $100,000 U and $20,000 F.
C) $20,000 U and $80,000 U.
D) $20,000 U and $80,000 F.
E) None of these.