Solution-What is the fixed overhead spending variance

What is the fixed overhead spending variance

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Question - H&B Inc. uses a standard cost system and calculates their application rates using direct labour hours.

This year the company had the following standards:

Standard direct labour hours per unit: 2 hours

Variable overhead application rate: $3 per direct labour hour

Fixed overhead application rate: $4 per direct labour hour

The company also had the following actuals:

Production: 14,000 units

Variable overhead: $97,944

Fixed overhead: $134,288

Total direct labour hours: 30,800

Required - What is the fixed overhead spending variance?

a) $11,088 unfavourable

b) $22,288 favourable

c) $11,088 favourable

d) $22,288 unfavourable

Reference no: EM133030866

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What is the fixed overhead spending variance

Reference no: EM133030866

Reference no: EM133030866

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