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Breaky Brothers uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labour-hours. The variable
Breaky Brothers uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labour-hours. The variable portion of the company's predetermined overhead rate is $3 per direct labour- hour. The standards call for 2 direct labour-hours per unit of output. In March, the company produced 2,000 units using 4,100 direct labour-hours and the actual variable overhead cost incurred was $12,050. What was the variable overhead spending variance? Multiple Choice $250 U $6,050 F $6,050 U $250 F
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