Question
Russo Corporation manufactured 23 comma 00023,000 air conditioners during November. The overhead cost-allocation base is $ 34.25$34.25 per machine-hour. The following variable overhead data pertain
Russo Corporation manufactured
23 comma 00023,000
air conditioners during November. The overhead cost-allocation base is
$ 34.25$34.25
per machine-hour. The following variable overhead data pertain to November:
Actual Budgeted
Production
23 comma 00023,000
units
25 comma 00025,000
unitsMachine-hours
11 comma 40011,400
hours
12 comma 50012,500
hoursVariable overhead cost per machine-hour:
$ 34.00$34.00
$ 34.25$34.25
What is the total variable overhead variance?
A.
$ 6 comma 275.00$6,275.00
unfavorable
B.
$ 3 comma 425.00$3,425.00
favorable
C.
$ 6 comma 275.00$6,275.00
favorable
D.
$ 3 comma 425.00$3,425.00
unfavorable
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