ACCA · Question 27 · E. Standard costing
A private hospital uses standard costing for its surgical wards. The standard variable overhead rate is $50 per nursing hour.
During a busy month, 2,000 nursing hours were actually worked, but the actual variable overheads incurred amounted to $105,000.
What is the variable overhead expenditure variance?
Answer options:
$5,000 Favorable
$5,000 Adverse
$10,000 Adverse
$105,000 Adverse
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