What is the difference between actual overhead costs and


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

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Accounting Basics: What is the difference between actual overhead costs and
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