Burkett Company Uses a Standard Cost System

Multiple Choice

Burkett Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labour hour. The overhead rate is based on 10,000 hours. Actual results were: Standard direct labour hours 9,000
Actual direct labour hours 10,000
Fixed overhead $190,000
Variable overhead $185,000
The variable overhead spending variance was:

A) $10,000 F
B) $50,000 U
C) $35,000 U
D) $15,000 U