Ketone Inc

Multiple Choice

Ketone Inc.produces small engines.For last year's operations, the following data were gathered: Ketone Inc.employs a standard costing system.During the year, a variable overhead rate of $5.00 was used.The labor standard requires 1 hour per unit produced.The variable overhead spending and efficiency variances are:

A) $176,000 U and $19,000 U.
B) $150,000 U and $24,000 F.
C) $400,000 U and $50,000 U.
D) $200,000 U and $40,000 F.
E) None of these