$$\begin{array}{l}\begin{array} { l c c c }
&&\text { Prod uction- }\
\text { Variances } & \text { Spending } & \text { Efficiency } & \text { Volume } \
\text { Variable manufacturing overhead } & \$ 7,500 \mathrm {~F} & \$ 30,000 \mathrm { U } & ( \mathrm { B } ) \
\text { Fixed manufacturing overhead } & \$ 28,000 \mathrm { U } & ( \mathrm { A } ) & \$ 80,000 \mathrm { U }
\end{array}
\end{array}$$
-In a combined 3-variance analysis,the total spending variance would be ________.
A) $20,500 F
B) $22,500 U
C) $20,500 U
D) $37,500 F

Question

$$\begin{array}{l}\begin{array} { l c c c } 
&&\text { Prod uction- }\
\text { Variances } & \text { Spending } & \text { Efficiency } & \text { Volume } \
\text { Variable manufacturing overhead } & \$ 7,500 \mathrm {~F} & \$ 30,000 \mathrm { U } & ( \mathrm { B } ) \
\text { Fixed manufacturing overhead } & \$ 28,000 \mathrm { U } & ( \mathrm { A } ) & \$ 80,000 \mathrm { U }
\end{array}
\end{array}$$
-In a combined 3-variance analysis,the total spending variance would be ________.
A) $20,500 F
B) $22,500 U
C) $20,500 U
D) $37,500 F

Quizplus · Accepted Answer

The total spending variance is calculated by combining the spending variances of both variable and fixed manufacturing overheads: $7,500 F (favorable) + $28,000 U (unfavorable) = $20,500 U (unfavorable).

-In a Combined 3-Variance Analysis,the Total Spending Variance Would Be