CGS @ Standard 1,000,000 Direct labor rate variance 120,000 Direct labor efficiency variance (30,000) Direct materials…

CGS @ Standard
1,000,000

Direct labor rate variance
120,000

Direct labor efficiency variance
(30,000)

Direct materials price variance
(50,000)

Direct materials quantity variance
(60,000)

Fixed overhead budget variance
(100,000)

Fixed overhead volume variance
(100,000)

Variable overhead spending variance
(10,000)

Variable overhead efficiency variance
80,000

Adjusted Cost of Goods Sold
850,000

Indicate which of the following is most consistent with the
information above:
A. The firm used less of the variable overhead driver than they
should have, given the amount they produced, and the actual
variable overhead rate was lower than the predetermined overhead
rate.
B. The firm used more of the variable overhead driver than they
should have, given the amount they produced, and the actual
variable overhead rate was lower than the predetermined overhead
rate.
C. The firm used less of the variable overhead driver than they
should have, given the amount they produced, and the actual
variable overhead rate was greater than the predetermined overhead
rate.
D. The firm used more of the variable overhead driver than they
should have, given the amount they produced, and the actual
variable overhead rate was greater than the predetermined overhead
rate.