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Better Housewares, Inc. budgets its variable manufacturing overhead at a rate of $10 per unit (.5 hours at $20 per hour) for a product it makes. In February, the company made 12,000 units of that product. Actual direct labor hours used were 6,100, and actual variable overhead costs were $58,000. The overhead spending variance in February is: Question 38 options: $2,000 unfavorable $1,000 unfavorable $1,000 favorable. $2,000 favorable.

Better Housewares, Inc. budgets its variable manufacturing overhead at a rate of $10 per unit (.5 hours at $20 per hour) for a product it makes. In February, the company made 12,000 units of that product. Actual direct labor hours used were 6,100, and actual variable overhead costs were $58,000. The overhead spending variance in February is: Question 38 options: $2,000 unfavorable $1,000 unfavorable $1,000 favorable. $2,000 favorable.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Better Housewares, Inc. budgets its variable manufacturing overhead at a rate of $10 per unit (.5 hours at $20 per hour) for a product it makes. In February, the company made 12,000 units of that product. Actual direct labor hours used were 6,100, and actual variable overhead costs were $58,000. The overhead spending variance in February is: Question 38 options: $2,000 unfavorable $1,000 unfavorable $1,000 favorable. $2,000 favorable.
Transcribed Image Text:Better Housewares, Inc. budgets its variable manufacturing overhead at a rate of $10 per unit (.5 hours at $20 per hour) for a product it makes. In February, the company made 12,000 units of that product. Actual direct labor hours used were 6,100, and actual variable overhead costs were $58,000. The overhead spending variance in February is: Question 38 options: $2,000 unfavorable $1,000 unfavorable $1,000 favorable. $2,000 favorable.
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