Regent, Inc. uses the following standard to produce a single unit of its product: overhead $6 (2 hrs. @ $3/hr.). The flexible budget for overhead is $160,000 plus $1.00 per direct labor hour. Actual data for the month show overhead costs of $277,000, and 35,000 units produced. The overhead volume variance is:

Multiple Choice

• $87,000 favorable.

• $60,000 favorable.

• $20,000 unfavorable.

• $80,000 unfavorable.

• $10,000 unfavorable