Question
Redel Inc. has the following results for the current period Budget Actual Fixed Overhead $ 156111 $ 162577 Units produced 6929 6033 Direct labour hours
| Redel Inc. has the following results for the current period | ||||
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| Budget | Actual |
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| Fixed Overhead | $ 156111 | $ 162577 |
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| Units produced | 6929 | 6033 |
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| Direct labour hours | 13858 | 11282 |
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| Fixed overhead is applied at $12 per direct labour hour. Variable overhead is applied at $27.50 per DLH. The standard hours per unit is 2 direct labour hours. Actual variable overhead was $311908. | ||||
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| Which of the following amounts represents the variable overhead spending variance? (a negative number implies an unfavourable variance) | ||||
Select one:
a. $21560
b. $1653
c. $-21560
d. $-1653
Clear my choice
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