24,655 views
21 votes
21 votes
Jenny's Corporation manufactured 13,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20 per machine-hour. The following fixed overhead data pertain to March: Actual Static Budget Production 13,000 units 12,000 units Machine-hours 3,050 hours 3,000 hours Fixed overhead costs $63,000 $60,000 What is the fixed overhead spending variance

User Pfunk
by
2.8k points

1 Answer

23 votes
23 votes

Answer:

$3,000 unfavorable

Step-by-step explanation:

With regards to the above, the fixed overhead spending variance is computed as;

= Actual overhead - Budgeted overhead.

Given that;

Actual overhead =

Budgeted overhead =

= $63,000 - $60,000

= $3,000 unfavorable

Therefore, the fixed overhead spending variance is $3,000 unfavorable

User Anschoewe
by
2.5k points