Franklin Glass Works Uses a Standard Cost System in Which

Multiple Choice

Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at $900,000 for the year, and the fixed manufacturing overhead rate was $1.50 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below:
-Franklin's variable overhead rate variance for the year is:

A) $20,000 unfavorable
B) $22,000 favorable
C) $22,000 unfavorable
D) $20,000 favorable