SCENARIO 3 FIXED MOH VARIANCE ANALYSIS

Jennys Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March:

Actual Static Budget

Production 25,000 units 24,000 units

Machine-hours 6,100 hours 6,000 hours

Fixed overhead costs for March $123,000 $120,000

g. What is Marchs fixed overhead spending variance?

h. What is Marchs fixed overhead production-volume variance?