Croissant Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows one direct labor hour per unit. During the current year, Crawford produced 110,000 units of product, (within the relevant range of activity) incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor. What is Croissant's fixed overhead spending variance for the current year?

a.$30,000 (U)

b.$24,000 (F)

c.$60,000 (F)

d.$36,000 (U)

2.

Somalian Corporation uses a standard costing system. Information for the month of May is as follows:

Actual manufacturing overhead costs ($26,000 is fixed)	$80,000
Direct labor:
Actual hours worked	12,000 hrs.
Standard hours allowed for actual production	10,000 hrs.
Average actual labor cost per hour	$18

The factory overhead rate is based on a normal volume of 12,000 direct labor hours. Standard cost data at 12,000 direct labor hours were as follows:

Variable factory overhead	$48,000
Fixed factory overhead	24,000
Total factory overhead	$72,000

What is the fixed overhead spending variance for Somalian?

a.$8,000 (U)

b.$4,000 (U)

c.$20,000 (U)

d.$2,000 (U)