Question
A firm applies variable overhead with a standard rate of $150 per direct labor hour (assume there is no fixed overhead for this problem). The
A firm applies variable overhead with a standard rate of $150 per direct labor hour (assume there is no fixed overhead for this problem). The firm's static budget predicted 6,110 finished goods units (and the standard is for 1.5 direct labor hours to be used per finished good unit). This period's actual finished goods units were 6,500.
The firm's actual direct labor hours were 9,500, and actual total variable overhead costs were $1,500,000.
What is the firm's variable overhead quantity variance (round final answer to nearest cent if necessary)?
Group of answer choices
$37,500 unfavorable
$75,000 unfavorable
$75,000 favorable
$37,500 favorable
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