Question
Tamarisk Co. uses a standard job cost system with a normal capacity of 27,000 direct labour hours. Tamarisk Co. produces 13,000 units, which cost
Tamarisk Co. uses a standard job cost system with a normal capacity of 27,000 direct labour hours. Tamarisk Co. produces 13,000 units, which cost $200,000 for direct labour (25,000 hours), $29,770 for variable overhead, and $141,050 for fixed overhead. The standard variable overhead per unit is $2 (2 hours at $1 per hour), and the standard fixed overhead per unit is $10.20 (2 hours at $5.10 per hour). Calculate the fixed overhead spending (budget) variance. Fixed overhead spending variance $ Unfavourable eTextbook and Media Save for Later Attempts: 1 of 2 used Submit Answer
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