Question
Paul Sykes publishes a pilot training course curriculum kit that he sells to flight schools across the country. He prepared the following static budget for
Paul Sykes publishes a pilot training course curriculum kit that he sells to flight schools across the country. He prepared the following static budget for the year based on expected sales of 26,100 curriculum kits. Sales revenue $3,262,500 Variable cost of goods sold 1,305,000 Variable selling and administrative expenses 391,500 Contribution margin 1,566,000 Fixed manufacturing overhead 730,800 Fixed selling and administrative expenses 321,900 Operating income $513,300 At the end of the year, Paul had sold 26,970 curriculum kits at an average price of $111 per kit. During the year, he incurred fixed overhead totaling $725,580. Calculate the fixed overhead spending variance.
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