H&B Inc. uses a standard cost system and calculates their application rates using direct labour hours.

This year the company had the following standards:

Standard direct labour hours per unit: 2 hours

Variable overhead application rate: $3 per direct labour hour

Fixed overhead application rate: $4 per direct labour hour

The company also had the following actuals:

Production: 14,000 units

Variable overhead: $97,944

Fixed overhead: $134,288

Total direct labour hours: 30,800

What is the fixed overhead spending variance?

Question 8 options:

a)

$22,288 unfavourable

b)

$22,288 favourable

c)

$11,088 unfavourable

d)

$11,088 favourable