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Actual machine hours 1,160 Standard machine hours allowed 1,310 Denominator activity (machine hours) 1,450 Actual fixed overhead costs $ 16,560 Budgeted fixed overhead costs $
| Actual machine hours | 1,160 | |
| Standard machine hours allowed | 1,310 | |
| Denominator activity (machine hours) | 1,450 | |
| Actual fixed overhead costs | $ | 16,560 |
| Budgeted fixed overhead costs | $ | 17,400 |
| Predetermined overhead rate ($2 variable + $12 fixed) | $ | 14 |
| What is the fixed overhead spending (price) variance? |
| A. | $840 favorable. | |
| B. | $580 favorable. | |
| C. | $280 favorable. | |
| D. | $300 favorable. |
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Audit Sampling An Introduction
Authors: Dan M. Guy, D. R. Carmichael, O. Ray Whittington
5th Edition
047137590X, 978-0471375906
