Question
Assume the variable overhead standard is 4 machine hours at $8 per hour and the fixed overhead standard is 4 machine hours at $10 per
Assume the variable overhead standard is 4 machine hours at $8 per hour and the fixed overhead standard is 4 machine hours at $10 per hour based on a planned activity of 21,000 machine hours when 5,250 units were scheduled to be produced. Given the following data: Actual variable overhead incurred: $180,750 Actual fixed overhead incurred: $250,000 Actual machine hours used: 20,800 Actual units produced: 5,350 the variable overhead spending variance is: Multiple Choice $550 favorable. $9,550 unfavorable. $4,800 favorable. $14,350 unfavorable. None of the answers is correct.
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