Everett Ltd Budgeted $1,488,000 for Total Overhead

Multiple Choice

Everett Ltd budgeted $1,488,000 for total overhead. The standard variable overhead rate was $2 per direct labor hour, or $6 per unit, based on an anticipated activity level of 600,000 direct labor hours. During the year 220,000 units were produced. Fixed overhead costs incurred were $300,000. The variable overhead budget variance was $19,800 unfavorable, and the actual variable overhead rate was $2.10 per direct labor hour. The variable overhead efficiency variance was

A) $76,000 U
B) $63,800 U
C) $46,200 F
D) $44,000 F