Use the following information to answer the following Questions
Landreth Fencing considers 3,000 direct labor hours or 50 fences to be its normal monthly capacity. Its standard variable overhead rate is $12 per direct labor hour. During the current month, $29,800 of variable overhead costs were incurred in working 2,950 direct labor hours to complete 45 fences.
-What is the variable overhead spending variance?
A) 5,600 F
B) 5,600 U
C) 6,200 F
D) 6,200 U
E) None of the above

Question

Use the following information to answer the following Questions 
 Landreth Fencing considers 3,000 direct labor hours or 50 fences to be its normal monthly capacity. Its standard variable overhead rate is $12 per direct labor hour. During the current month, $29,800 of variable overhead costs were incurred in working 2,950 direct labor hours to complete 45 fences.
-What is the variable overhead spending variance?
A) 5,600 F
B) 5,600 U
C) 6,200 F
D) 6,200 U
E) None of the above

Quizplus · Accepted Answer

Actual - (AH x SR) = $29,800 - (2,950 x $12) = $29,800 - $35,400 = $5,600 F

Use the Following Information to Answer the Following Questions