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What is the Variable MOH Spending Variance? a. $8,675 unfavorable b. $8,675 favorable c. $26,000 unfavorable d. $26,000 favorable e. None of the above I
What is the Variable MOH Spending Variance?
a. $8,675 unfavorable
b. $8,675 favorable
c. $26,000 unfavorable
d. $26,000 favorable
e. None of the above
I get d as an answer but the answer key says the variable MOH spending variance is b. Can someone please explain the correct answer? I found the flexible budget amount for VMOH and computed the difference it had to the actual amount used towards VMOH. I'm not sure if the answer key is wrong or if I am missing a step/misunderstanding this.
The company's Spending budget for overhead is as follows. They allocate OH based on machine hours. The static budget volume is 16,000 units: Number of units Standard machine hours Budgeted Variable OH Costs Budgeted Fixed OH Costs 14,000 17,500 $196,000 $60,200 16,000 20,000 $224,000 $60,200 18,000 22,500 $252,000 $60,200 The company actually produced 14,000 units with actual machine hours of 26,000, variable overhead of $170,000, and actual fixed overhead of $70,000Step by Step Solution
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