Question
Insight Company's standard factory overhead rate is $3.58 per direct labor hour (DLH), calculated at 90% capacity = 700 standard DLHs. In December, the company
Insight Company's standard factory overhead rate is $3.58 per direct labor hour (DLH), calculated at 90% capacity = 700 standard DLHs. In December, the company operated at 80% of capacity, or 622 standard DLHs. Budgeted factory overhead at 80% of capacity is $3,210, of which $1,500 is fixed overhead. For December, the actual factory overhead cost was $4,160 for 700 actual DLHs, of which $1,440 was for fixed factory overhead. What was the fixed factory overhead spending variance for Insight Company in December?
Multiple Choice
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$60 favorable.
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$235 favorable.
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$435 unfavorable.
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$570 unfavorable.
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$620 unfavorable.
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