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Zazoo, Inc. specializes in reviewing and editing technical magazine articles. Zazoo sets the following standards for evaluating the performance of the professional staff:Annual budgeted fixed
Zazoo, Inc. specializes in reviewing and editing technical magazine articles. Zazoo sets the following standards for evaluating the performance of the professional staff:Annual budgeted fixed overhead costs for normal capacity level of 10,000 articles reviewed and edited$600,000Standard professional hours per 10 articles200Flexible budget of standard labor costs to process 10,000 articles$10,000,000The following data apply to the 9,500 articles that were actually reviewed and edited during the current year.Total hours used by professional staff192,000Flexible costs$9,120,000Total cost$9,738,000Zazoo's fixed overhead spending variance for the year is $18,000 unfavorable. $18,000 favorable. $48,000 unfavorable. $30,000 favorable
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