Question
Answer the following three questions using the information below: Rachel Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20.00
Answer the following three questions using the information below:
Rachel Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March:
| Actual | Static Budget | |
| Production | 25,000 units | 24,000 units |
| Machine-hours | 6,100 hours | 6,000 hours |
| Fixed overhead cost for March | $123,000 | $120,000 |
What is the fixed overhead spending variance?
| A. | $1,000 unfavorable | |
| B. | $2,000 favorable | |
| C. | $3,000 unfavorable | |
| D. | $5,000 favorable |
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Financial Management In The Sport Industry
Authors: Matthew T Brown, Daniel Rascher, Mark S Nagel, Chad McEvoy
2nd Edition
9781621590118
