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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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