Sampson Apparel Inc.
Sampson Apparel Inc. incurred actual variable overhead expenses of $62 000 in the current year for the production of 10 000 units. Variable overhead was applied at a rate of $2.00 per direct labour hour and 3 direct labour hours were budgeted for each unit. The company used 29 000 direct labour hours for production.
-What was Sampson's variable overhead spending variance?
A) $4000 U
B) $4000 F
C) $2000 U
D) $2000 F

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The Answer of Sampson Apparel Inc.
Sampson Apparel Inc. incurred actual variable overhead expenses of $62 000 in the current year for the production of 10 000 units. Variable overhead was applied at a rate of $2.00 per direct labour hour and 3 direct labour hours were budgeted for each unit. The company used 29 000 direct labour hours for production.
-What was Sampson's variable overhead spending variance?
A) $4000 U
B) $4000 F
C) $2000 U
D) $2000 F

Sampson Apparel Inc. Sampson Apparel Inc. Incurred Actual Variable Overhead Expenses of $62