Cabot Company collected the following data regarding production of one of its products.Compute the variable overhead spending variance.
A)$18,300 favorable.
B)$18,000 favorable.
C)$18,000 unfavorable.
D)$18,300 unfavorable.
E)$14,300 unfavorable.

Question

Cabot Company collected the following data regarding production of one of its products.Compute the variable overhead spending variance. 
A)$18,300 favorable. 
B)$18,000 favorable. 
C)$18,000 unfavorable. 
D)$18,300 unfavorable. 
E)$14,300 unfavorable.

Quizplus · Accepted Answer

Actual variable overhead costs = $1,140,000
AH * SVR = (81,000 * $14.30) = $1,158,300; Variable overhead spending variance = $18,300 favorable

Cabot Company Collected the Following Data Regarding Production of One