Answer:
The correct answer is D.
Explanation:
Giving the following information:
50,000 mattresses, as follows: Direct Materials $100,000 Direct Labor $50,000 Variable Overhead $75,000 Fixed Overhead $100,000 Actual costs incurred during the production of 60,000 mattresses were; direct materials, $110,000; direct labor, $60,000; variable overhead, $100,000; and fixed overhead, $97,000.
Variable Manufacturing overhead spending variance= (standard rate - actual rate)* actual quantity
Variable Manufacturing overhead spending variance= (1.5 - 1.6667)*60,000= $10,000 unfavorable
Fixed overhead variance= 100,000 - 97,000= 3,000 favorable
Total MOH variance= 7,000 unfavorable
