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P operates a standard marginal costing system

Author:
January 3rd, 2018

P operates a standard marginal costing system. The following budgeted and standard cost information is available:Budgeted production and sales 10,000 unitsVariable production overheads – 5 hours x $4 $20 per unitActual results for the period were as follows:Production and sales 11,500 unitsVariable production overheads – 52,000 hours $195,000The variable production overhead expenditure variance isA. $35,000 adverseB. $13,000 adverseC. $13,000 favourableD. $35,000 favourable

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