Ringo Corporation applied $7,200 of manufacturing overhead to production during the month. Its actual overhead costs for

Question:

Ringo Corporation applied $7,200 of manufacturing overhead to production during the month. Its actual overhead costs for the month were $8,000. The cost accountant reports that Ringo’s unfavorable spending variance for the month totals $1,500.

Did Ringo produce more or less than its normal output for the month? Defend your answer.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...