Crawford Company's standard fixed overhead cost is $6 per direct labour hour based on budgeted fixed costs of $600,000.The standard allows one direct labour hour per unit.During 2006,Crawford produced 110,000 units of product,incurred $630,000 of fixed overhead costs,and recorded 212,000 actual hours of direct labour. What is Crawford's fixed overhead spending variance?
A)$24,000 (F)
B)$30,000 (U)
C)$36,000 (U)
D)$60,000 (F)

Question

Quizplus · Accepted Answer

The fixed overhead spending variance is calculated as the difference between the actual fixed overhead costs and the budgeted fixed overhead costs. In this case, the actual fixed overhead costs were $630,000 and the budgeted fixed overhead costs were $600,000, resulting in a variance of $30,000 unfavorable ($630,000 - $600,000 = $30,000 (U)).

Crawford Company's Standard Fixed Overhead Cost Is $6 Per Direct