Question

Castleton Corporation manufactured​ 36,500 units during March. The following fixed overhead data relates to​ March: Actual Budgeted Production ​36,500 units ​35,000 units ​Machine-hours ​5,400 hours ​5,250 hours Fixed overhead costs for March ​$139,510 ​$131,250 What is the fixed overhead spending​ variance?

Answer 1

Spending variance = $8260 unfavorable

Step-by-step explanation:

The fixed overhead spending variance is the difference between budgeted overhead and actual overhead incurred. It shows he amount by the budgeted and actual overhead differ.

Budgeted overhead $131,250

Actual overhead ​$139,510 ​

Variance 8260 unfavorable