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Albertville applies overhead based on direct labor hours. The variable overhead standard is 2 hours...

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Question

Accounting

Albertville applies overhead based on direct labor hours. The variable overhead standard is 2 hours at $12 per hour. During July, Albertville spent $116,700 for variable overhead. 8,890 labor hours were used to produce 4,700 units. What is the variable overhead rate variance?

a.

$3,200 unfavorable
b.

$6,120 unfavorable
c.

$10,020 unfavorable
d.

$3,200 favorable

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