Question
Kris Company calculates its predetermined rates using practical volume, which is 325,000 units. The standard cost system allows 3 direct labor hours per unit produced.
Kris Company calculates its predetermined rates using practical volume, which is 325,000 units. The standard cost system allows 3 direct labor hours per unit produced. Overhead is applied using direct labor hours. The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead. The actual results for the year are as follows:
Units produced: | 318,000 |
Direct labor: | 965,000 hours @ $12.00/hour |
Variable overhead: | $3,302,000 |
Fixed overhead: | $998,000 |
Calculate the variable overhead spending variance.
None of these.
$40,000 F
$69,250 F
$69,250 U
$24,000 U
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