Moccasin Company manufactures a special spare part. Moccasin had an unfavorable variable overhead spending variance of $475

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Question:

Moccasin Company manufactures a special spare part. Moccasin had an unfavorable variable overhead spending variance of $475 for the month of August. The actual variable overhead incurred for the month of August was $7,250, and the standard variable overhead rate was $5 per hour. Determine the actual direct labor hours worked in the month of August.

a.1,260 hours

b.1,355 hours

c.1,545 hours

d.1,640 hours