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The predetermined overhead rate for Crane Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount

The predetermined overhead rate for Crane Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $14208 variable and $8640 fixed, and 2400 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is

$2880 F. A

$1152 U. B

$1152 F. C

$2880 U. D

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