Hexene, Inc

Multiple Choice

Hexene, Inc.produces a specialized machine part used in forklifts.For last year's operations, the following data were gathered:
Hexene employs a standard costing system.During the year, a variable overhead rate of $6.00 was used.The labor standard requires 0.75 hours per unit produced.The variable overhead spending and efficiency variances are:

A) $45,000 U and $6,500 U.
B) $52,000 F and $12,000 U.
C) $9,600 U and $45,000 F.
D) $16,000 F and $8,400 F.
E) None of these