A company using a standard cost system and applying overhead based upon units produced reported the following results relating to its factory overhead.

Total overhead spending variance Total overhead under$-$applied $$100,000$ Favorable

$$80,000$

Based upon this information, the company can conclude it had

Calculator

A an unfavorable production volume variance.

B an unfavorable variable overhead efficiency variance.

C a favorable variable overhead spending variance.

D a total overhead variance of $$20,000$ Favorable