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 $14.00 per hour. Actual data for the month showed overhead costs of $174,000 for 2000 units produced. What is the difference between actual overhead costs and standard overhead costs allocated to products?

A) $146,000 favorable
B) $146,000 unfavorable
C) $36,000 favorable
D) $36,000 unfavorable