Judd Company uses standard costs for its manufacturing division. Standards specify
0.10.1
direct labor hours per unit of product. The allocation base for variable overhead costs is direct labor hours. At the beginning of the year, the static budget for variable overhead costs included the following data:
Production volume
6 comma 3006,300 units
Budgeted variable overhead costs
$ 13 comma 500$13,500
Budgeted direct labor hours
630630 hours
At the end of the year, actual data were as follows:
Production volume
4 comma 1004,100 units
Actual variable overhead costs
$ 15 comma 100$15,100
Actual direct labor hours
495495 hours
What is the variable overhead cost variance? (Round any intermediate calculations to the nearest cent, and final answer to the nearest dollar.)
Question content area bottom
Part 1
A.
$ 15 comma 100$15,100
F
B.
$ 13 comma 500$13,500
U
C.
$ 5 comma 720$5,720
F
D.
$ 4 comma 495$4,495
U