Posted by: Pdfprep
Post Date: February 9, 2021
Refer to the exhibit.
SP, a manufacturing company, uses a standard costing system.
The standard variable production overhead cost is based on the following budgeted figures for the year:
During the month of September, 5,300 actual hours were worked and 5,600 standard hours of output were produced. Total variable production overhead costs in September were $8,600.
What was the total variable production overhead variance in September?
A . $200 adverse
B . $650 adverse
C . $650 favourable
D . $200 favourable
Answer: A
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