Use the following information to answer the following Questions
Phillips Fencing considers 6,000 direct labor hours or 200 fences to be its normal monthly capacity. Its standard variable overhead rate is $7 per direct labor hour. During the current month, $44,500 of variable overhead costs were incurred in working 6,200 direct labor hours to complete 215 fences.
-What is the variable overhead spending variance?
A) $1,100 F
B) $2,500 F
C) $1,100 U
D) $2,500 U
E) None of the above

Question

Use the following information to answer the following Questions 
 Phillips Fencing considers 6,000 direct labor hours or 200 fences to be its normal monthly capacity. Its standard variable overhead rate is $7 per direct labor hour. During the current month, $44,500 of variable overhead costs were incurred in working 6,200 direct labor hours to complete 215 fences.
-What is the variable overhead spending variance?
A) $1,100 F
B) $2,500 F
C) $1,100 U
D) $2,500 U
E) None of the above

Quizplus · Accepted Answer

Actual - (AH x SR) = $44,500 - (6,200 x $7) = $44,500 - $43,400 = $1,100 U

Use the Following Information to Answer the Following Questions