Question - Dire Corporation uses the following standard costs for a single unit of product:
Direct Labor (3.5 hours at $12.50/hour) - $43.75
Overhead (5 hours at $4.25/hour) - $21.25
Actual data for the month showed overhead costs of $425,000 for 22,500 units produced. What is the difference between actual overhead costs and standard overhead costs allocated to products?
A) $53,125 unfavorable
B) $53,125 favorable
C) $329,375 favorable
D) $329,375 unfavorable