Admac Technologies has a standard variable overhead rate of $4.50 per machine hour, and each unit produced has a standard time allowed of three hours. The company's static budget was based on 46,000 units. Actual results for the year follow.Actual units produced: 42,000Actual machine hours worked: 120,000Actual variable overhead incurred: $520,000Admac's variable-overhead spending variance is:
A. $27,000 unfavorable.
B. $20,000 favorable.
C. $20,000 unfavorable.
D. $27,000 favorable.
E. None of the answers is correct.
Answer: B
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