16

Refer to Exhibit 10-1. Based on this information, what is the fixed overhead spending variance?

		$15,000 favorable
		$10,000 unfavorable
		$15,000 unfavorable
		$10,000 favorable
		None of the answer choices is correct.

Exhibit 10-1 Flatland Company applies fixed manufacturing overhead costs to products based on direct labor hours. Information for the month of April appears below. Flatland expects to produce and sell 18.000 units for the month. Below is budget information for Flatland Company. Budgeted fixed overhead costs Budgeted direct labor hours Standard direct labor hours per unit Actual production Actual fixed overhead costs $270,000 90,000 hours 5 hours per unit 17,000 $280.000