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The Stallard Corporation manufactures Product X that consumes a large amount of overhead. For the month of October Stallard produced 15,700 units of Product X

The Stallard Corporation manufactures Product X that consumes a large amount of overhead. For the month of October Stallard produced 15,700 units of Product X and incurred actual variable overhead costs of $285,000. The standard costs developed for Product X by Stallard follow:

Standard direct labor hours per unit

3

Standard direct labor rate per hour

$15.00

Standard variable overhead hours per unit

10

Standard variable overhead rate per hour

$7.80

What was the total variable overhead variance for Product X in October?

Correct Answer: $939,600 favorable

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