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The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to
The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred Actual fixed overhead cost incurred Budgeted fixed overhead cost Actual machine hours Standard machine hours allowed for the units manufactured Denominator volume-machine hours Standard variable overhead rate per machine hour $ 36,000 $ 18,000 $ 10,000 8,000 5,500 8,500 $ 3 The variable overhead spending variance is: Multiple Choice $6.000 favorable. C $7,100 favorable. $5,600 unfavorable. $6,400 unfavorable. $6.500 favorable
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