Silver Manufacturing Company Has a Standard Variable Overhead Rate of $4

Silver Manufacturing Company has a standard variable overhead rate of $4 per machine hour, with each completed unit expected to take three machine hours to produce. A review of Silver's accounting records found the following: Actual variable overhead: $210,000
Variable-overhead efficiency variance: $18,000U
Variable-overhead spending variance: $30,000F
How many units did Silver actually produce during the period?

A) 13,500.
B) 16,500.
C) 18,500.
D) 21,500.
E) 52,500.

Correct Answer:

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