Reference no: EM132571846

The following information is available for Allen Company:

$15.00 Standard variable manufacturing overhead rate perdirect labor hour

$220,000 Actual variable manufacturing overhead

14,000 Standard direct labor hours for outputproduced

13,000 Actual direct labor hours worked

Question 1: Given this information, the variable manufacturing overhead spending variance is:

Option 1: $15,000 favorable

Option 2: $15,000 unfavorable

Option 3: $25,000 unfavorable

Option 4: $25,000 favorable

Option 5: $10,000 favorable

Option 6: $10,000 unfavorable