ACCA · Question 26 · Syllabus E: Standard costing
An automated warehouse uses variable overheads based on machine hours.
Standard variable overhead rate: $4 per machine hour.
Standard time per unit: 2 hours.
Actual units produced: 1,000.
Actual machine hours worked: 2,100.
Actual variable overheads incurred: $8,600.
What is the Variable Overhead Expenditure Variance?
Answer options:
$600 Adverse
$200 Adverse
$400 Adverse
$200 Favorable
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