Long,IncProduces Small Engines Long,IncEmploys a Standard Costing System

Multiple Choice

Long,Inc.produces small engines.For last year's operations,the following data were gathered: $\begin{array}{ll}\text { Units produced: } & 100,000 \\\text { Direct labour: } & 160,000 \text { hours }(\$ 12.00 \text { per } \\& \text { hour } \\\text { Actual variable overhead: } & \$ 1,300,000\end{array}$ Long,Inc.employs a standard costing system.During the year,a variable overhead rate of $8.00 per hour was used.The labour standard requires 1.5 hours per unit produced.What are the variable overhead spending and efficiency variances,respectively?

A) $20,000 U and $80,000 U
B) $20,000 U and $80,000 F
C) $100,000 U and $20,000 U
D) $100,000 U and $20,000 F