18) Orlando Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 12,000 Actual variable overhead incurred: $77,700 Actual machine hours worked: 18,800 Standard variable overhead cost per machine hour: $4.50 If Orlando estimates 1.5 hours to manufacture a completed unit, the company's variable- overhead spending variance is: A) $3,600 favorable.. B) $3,600 unfavorable. C) $6,900 favoralle. D) $6,900 unfavorable. E) None of the answers is correct.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 12PA: ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc....
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18) Orlando Company, which applies overhead to production on the basis of machine hours,
reported the following data for the period just ended:
Actual units produced: 12,000
Actual variable overhead incurred: $77,700
Actual machine hours worked: 18,800
Standard variable overhead cost per machine hour: $4.50
If Orlando estimates 1.5 hours to manufacture a completed unit, the company's variable-
overhead spending variance is:
A) $3,600 favorable.
B) $3,600 unfavorable.
C) $6,900 favoralle.
D) $6,900 unfavorable.
E) None of the answers is correct.
Transcribed Image Text:18) Orlando Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 12,000 Actual variable overhead incurred: $77,700 Actual machine hours worked: 18,800 Standard variable overhead cost per machine hour: $4.50 If Orlando estimates 1.5 hours to manufacture a completed unit, the company's variable- overhead spending variance is: A) $3,600 favorable. B) $3,600 unfavorable. C) $6,900 favoralle. D) $6,900 unfavorable. E) None of the answers is correct.
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