Questions 7 - 11 refer to the following: ABC Company has set the following standards for the production of one case of Z

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Questions 7 - 11 refer to the following: ABC Company has set thefollowing standards for the production of one case of ZestyPretzels: Usage Cost Direct Materials .9 pounds $5 per pound DirectLabor .4 hours $15 per hour Variable Overhead .4 hours $5 per hourActual information recorded by ABC Company for the month of Marchis below: • Purchased 7,000 pounds at a cost of $31,500 • Used5,616 pounds to make 5,200 good units • Paid $32,214 for 2,184hours of labor. • Actual variable OH costs were $11,600.
11. The variable overhead spending variance for March is: a.$1,400 unfavorable c. $680 unfavorable b. $1,400 favorable d. $680favorable
12. An unfavorable fixed overhead volume variance would indicatethat: a. fewer units were made during the period than had beenbudgeted b. more units were made during the period than had beenbudgeted c. fewer labor hours were worked during the period thanhad been budgeted d. more labor hours were worked during the periodthan had been budgeted