ACCOUNTING
Multiple Choice
Roberson Corporation manufactured 30,000 ice chests during September. The overhead cost-allocation base is $11.25 per machine-hour. The following variable overhead data pertain to September.
Actual Budgeted
Production 30,000 units 24,000 units
Machine-hours 15,000 hours 10,800 hours
Variable overhead cost per machine-hour: $11.00 $11.25
What is the variable overhead spending variance?
a. $3,750 favorable
b. $16,875 unfavorable
c. $13,125 unfavorable
d. $30,375 unfavorable
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