The variable overhead spending and efficiency

Question

Markus, Inc. produces a specialized machine part used in forklifts. For last year's operations, the following data were gathered:


Markus employs a standard costing system. During the year, a variable overhead rate of $5.00 was used. The labor standard requires 0.50 hours per unit produced. The variable overhead spending and efficiency variances are, respectively

a. $10,000 F and $7,500 U

b. $10,000 F and $7,500 F

c. $10,000 U and $7,500 U

d. $7,500 U and $10,000 F

e. None of these choices are correct.