Question
The Laramie Corporation manufactures Product X that consumes a large amount of overhead. For the month of October Laramie produced 16,650 units of Product X
The Laramie Corporation manufactures Product X that consumes a large amount of overhead. For the month of October Laramie produced 16,650 units of Product X and incurred actual variable overhead costs of $463,000. The standard costs developed for Product X by Laramie follow: Standard direct labor hours per unit 22 Standard direct labor rate per hour $18 Standard variable overhead hours per unit 88 Standard variable overhead rate per hour $4.2 What was the total variable overhead variance for Product X in October? A. $393,070 unfavorable B. $96,440 favorable C.$96,440 unfavorable D. $393,070 favorable
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