Confusing question...

*Both #7 and #8 are confusing*

QUESTION 7 Elgin Company's budgeted fixed factory overhead costs are $50,000 per month plus a variable factory overhead rate of $4.00 per direct labor hour. The standard direct labor hours allowed for October production were 20,000. Am analysis of the factory overhead indicates that in October, Elgin had an unfavorable flexible-budget variance of $1,500 and a favorable production-volume variance of $500. Elgin uses a two-variance analysis of overheasd The applied factory overhead in October is: o a $128,000. b $129,500. @ $130.500. o d $130,000. QUESTION 8 1 poin Which of the following correctly demonstrates the comparison of the four-variance method of factory overhead analysis to the two-variance method of factory overhead analysis? O a. The sum of the fixed and variable spending and variable efficiency variances in the four-variance method is equal to the flexible-budget variance in the two-variance method budget variance in the two-variance method variance method is equal to the flexible-budget variance in the two-variance method b. The sum of the fixed and variable spending variances in the four-variance method is equal to the flexible- 0 The sum of the fixed and variable spending variable eff esen y and production volume vanances m the four d. The fixed spending variance in the four-variance method is equal to the flexible-budget vanance in the two- varsance method Cliek Save and Submir to save and submir. Cliek Save All Ansuwers to save all anscers Save All Answers Save a 6 8 9 0 5 F G H J