Multiple Choice $18,000 favorable. $4,000 favorable. $18,000 unfavorable. $18,300 favorable

Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead variance. Direct labor standard (2 hours O $12. 75/ hour) Actual direct labor hours Budgeted l_mits Actual finished l_mits produced Standard variable OH rate (2 hours O $14. 30/ hour) Standard fixed OH rate ($336, 000/42, 000 1_mits) Actual cost of variable overhead costs incurred Actual cost of fixed overhead costs incurred Multiple Choice $ 25. 50 per finished Imit 81, 500 hours 42, 000 1_mits 40, 000 1_mits $ 28. 60 per finished Imit $ 8. 00 per Imit $ 1, 140, ooo $ 338, ooo O O O O $18,000 favorable. $4,000 favorable. $18,000 unfavorable. $18,300 favorable.