Question
19) The Laramie Corporation manufactures Product X that consumes a large amount of overhead. For the month of October Laramie produced 15,250 units of Product
19) The Laramie Corporation manufactures Product X that consumes a large amount of overhead. For the month of October Laramie produced 15,250 units of Product X and incurred actual overhead costs of $375,000. The standard costs developed for Product X by Laramie follow:
Standard direct labor hours per unit | 2 |
Standard direct labor rate per hour | $15.00 |
|
|
Standard overhead hours per unit | 6 |
Standard overhead rate per hour | $5.50 |
What was the total variable overhead variance for Product X in October?
A) $128,250 favorable
B) $128,250 unfavorable
C) $291,125 favorable
D) $291,125 unfavorable
PLEASE SHOW ANSWER AND PROVIDE EXPLANATION!
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