Sandra Corp. has the following results for the current period: Fixed overhead $162,500 $159,300 Units produced 7,250 Direct labor hours 13,000 • 120,400 89,200 Fixed overhead is applied at $11 per direct labor hour. Variable overhead is applied at $25.80 per direct labor hour. The standard hours per unit is 2 direct labor hours. The actual variable overhead was $2,275,000. Which of the following amounts represents the variable overhead spending variance?

Sandra Corp. has the following results for the current period: Fixed overhead $162,500 $159,300 Units produced 7,250 Direct labor hours 13,000 • 120,400 89,200 Fixed overhead is applied at $11 per direct labor hour. Variable overhead is applied at $25.80 per direct labor hour. The standard hours per unit is 2 direct labor hours. The actual variable overhead was $2,275,000. Which of the following amounts represents the variable overhead spending variance?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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