What entry records the application of variable overhead at a predetermined rate?

• A.

  Overhead control	XXX
  Cash		XXX

• B.

  Work-in-process	XXX
  Fixed overhead control		XXX

• C.

  Work-in-process	XXX
  Variable overhead applied		XXX

• D.

  Overhead control	XXX
  Variable overhead applied		XXX

Using the following information, compute the variable overhead spending variance.

Actual direct labor hours used	4,700
Units produced	1,500
Standard labor hours per unit produced	3
Budgeted variable overhead per standard
direct labor hour	$2
Actual variable overhead incurred	$9,500

• A.$400 favorable.

• B.$100 favorable.

• C.$100 unfavorable.

• D.$400 unfavorable.