If Kennedy Company makes the following journal entry:

Variable Overhead Allocated	50,000
Variable Overhead Efficiency Variance	15,000
Variable Overhead Control	62,500
Variable Overhead Rate Variance	2,500

It may be inferred that ________.

Question 5Select one:

a.

actual variable manufacturing overhead costs were $62,500

b.

the net variance is $12,500 unfavourable

c.

Kennedy over-allocated variable manufacturing overhead

d.

the journal entry accounts are incorrect

e.

the net variance is a $12,500 favourable rate variance