Question
The following information is available from the Terry Company: Actual total factory overhead cost incurred $ 34,000 Actual fixed overhead cost incurred $ 11,400 Budgeted
The following information is available from the Terry Company:
| Actual total factory overhead cost incurred | $ 34,000 |
|---|---|
| Actual fixed overhead cost incurred | $ 11,400 |
| Budgeted fixed overhead expenses | $ 15,000 |
| Actual direct labor hours (DLH) worked | 6,000 |
| Standard DLHs for this periods production (output) | 4,600 |
| Standard variable overhead rate per DLH | $ 3.00 |
| Standard fixed overhead rate per DLH | $ 2.50 |
What is the variable overhead (VOH) spending variance for Terry Company for the period?
Multiple Choice
A. $3,800 favorable.
B. $4,200 unfavorable.
C. $4,000 unfavorable.
D. $4,600 favorable.
E. $4,600 unfavorable.
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
