Speaker City Designs and Manufactures High-End Home Theater Speakers

Multiple Choice

Speaker City designs and manufactures high-end home theater speakers. Speaker City uses a standard overhead rate of 2.0 hours per unit at a cost of $8.00 per hour. Data for the month of June shows that Speaker City produced 400 units and recorded actual overhead costs of $24,500. What is the total variable overhead variance for the month of June?

A) $18,100 favorable
B) $21,300 unfavorable
C) $21,300 favorable
D) $18,100 unfavorable