167. Pearce CompanyPearce Company uses a standard cost system for its production process. Pearce Company applies overhead based on direct labor hours. The following information is available for July: Standard: Direct labor hours per unit Variable overhead per hour Fixed overhead per hour (based on 11,990 DLHS) 2.20 $2.50 $3.00 Actual: Units produced Direct labor hours 4,400 8,800 Variable overhead Fixed overhead $29,950 $42,300 Refer to Pearce Company Using the four-variance approach, what is the variable overhead spending variance? A. $ 7,950 UB. $ 25 FC. $ 7,975 UD. $10,590 U
167. Pearce CompanyPearce Company uses a standard cost system for its production process. Pearce Company applies overhead based on direct labor hours. The following information is available for July: Standard: Direct labor hours per unit Variable overhead per hour Fixed overhead per hour (based on 11,990 DLHS) 2.20 $2.50 $3.00 Actual: Units produced Direct labor hours 4,400 8,800 Variable overhead Fixed overhead $29,950 $42,300 Refer to Pearce Company Using the four-variance approach, what is the variable overhead spending variance? A. $ 7,950 UB. $ 25 FC. $ 7,975 UD. $10,590 U
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:167. Pearce CompanyPearce Company uses a standard cost system for its production
process. Pearce Company applies overhead based on direct labor hours. The following
information is available for July:
Standard:
2.20
Direct labor hours per unit
Variable overhead per hour
Fixed overhead per hour
$2.50
(based on 11,990 DLHS)
$3.00
Actual:
Units produced
Direct labor hours
Variable overhead
4,400
8,800
$29,950
$42,300
Fixed overhead
Refer to Pearce Company Using the four-variance approach, what is the variable overhead spending variance? A. $
7,950 UB. $
25 FC. $ 7,975 UD. $10,590 U
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