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Question 8 (2 points) H&B Inc. uses a standard cost system and calculates their application rates using direct labour hours. This year the company had
Question 8 (2 points) 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: $4 per direct labour hour Fixed overhead application rate: $6 per direct labour hour The company also had the following actuals: Production: 16,000 units Variable overhead: $141,312 Fixed overhead: $203,136 Total direct labour hours: 36,800 What is the fixed overhead spending variance? a) $11,136 unfavourable b) $17,664 unfavourable c) $11,136 favourable d) $17,664 favourable
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