Question

Calculator Crawford Company's standard fixed overhead rate is $6 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows one direct labor hour per unit. Last year, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor. What is Crawford's fixed overhead spending variance for last year

Answer 1

$30,000(U)

Step-by-step explanation:

Calculator Crawford Company's

Fixed overhead cost $630,000

Less budgeted fixed costs $600,000

Fixed overhead spending variance $30,000(U)

Therefore Crawford's fixed overhead spending variance for last year will be

$30,000(U)