Question

Adams Co. uses the following standard to produce a single unit of its product:
Variable overhead (2 hrs. @ $3/hr.) = $ 6
Actual data for the month show variable overhead costs of $150,000 based on 24,000 units of production. The total variable overhead variance is:
A. $6,000F
B. $6,000U
C. $78,000U
D. $78,000F
E. $0

Answer

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