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Baby Frames, Inc. evaluates manufacturing overhead in its factory by using variance analysis. The following information applies to the month of May: actual budgeted Number
Baby Frames, Inc. evaluates manufacturing overhead in its factory by using variance analysis. The following information applies to the month of May:
actual budgeted
Number of frames manufactured | 19,000 | 20,000 |
Variable overhead costs | $4,100 | $2 per direct labor hour |
Fixed overhead costs | $22,000 | $20,000 |
Direct labor hours | 2,100 | 0.1 hour per frame |
What is the fixed overhead spending variance?
a. $1,000 favorable.
b. $1,000 unfavorable.
c. $2,000 favorable.
d. $2,000 unfavorable.
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