Vette Tie Corporation Has Developed the Following Manufacturing Overhead Standards

Multiple Choice

Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties. Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs) .

The above standards were based on an expected annual volume of 60,000 ties. The actual results for last year were as follows:


-What was Vette's variable overhead rate variance?

A) $2,800 Unfavorable
B) $13,200 Favorable
C) $16,000 Favorable
D) $68,000 Unfavorable