Problem 1. (STANDARD COSTING)

Uniform Company has developed standard overhead costs based on a capacity of 180,000 machine hours as follows:

Standard costs per unit:

Variable portion : 2 hours @ $3 = $ 6

Fixed portion : 2 hours @ $5 = 10

$16

During April, 85,000 units were scheduled for production, but only 80,000 units were actually produced. The following data relate to April:

Actual machine hours used were 165,000.

Actual overhead incurred totaled $1,378,000 ($518,000 variable plus $860,000 fixed).

All inventories are carried at standard cost.

The total overhead variance for April was?

A.$17,000 U

B.$98,000 F

C.$17,000 F

D.$98,000 U