Kraig Fencing considers 4,000 direct labor hours or 100 fences to be its normal monthly capacity. Its standard variable overhead rate is $9 per direct labor hour. During the current month, $33,500 of variable overhead costs were incurred in working 3,800 direct labor hours to complete 92 fences. What is the variable overhead spending variance? Select one: a. $700 U b. $700 F c. $2,500 U d. $2,500 F e. None of the above
Kraig Fencing considers 4,000 direct labor hours or 100 fences to be its normal monthly capacity. Its standard variable overhead rate is $9 per direct labor hour. During the current month, $33,500 of variable overhead costs were incurred in working 3,800 direct labor hours to complete 92 fences. What is the variable overhead spending variance? Select one: a. $700 U b. $700 F c. $2,500 U d. $2,500 F e. None of the above
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 11EB: Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The...
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Question
Kraig Fencing considers 4,000 direct labor hours or 100 fences to be its normal monthly capacity. Its standard variable
Select one:
a. $700 U
b. $700 F
c. $2,500 U
d. $2,500 F
e. None of the above
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