Kris Company calculates its predetermined rates using practical volume, which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead.The actual results for the year are as follows:

- Calculate the fixed overhead spending variance.
A) $32,000 F
B) $0
C) $4,000 U
D) $12,000 U
E) $4,000 F

Question

Kris Company calculates its predetermined rates using practical volume, which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead.The actual results for the year are as follows:

- Calculate the fixed overhead spending variance.

-  Calculate the fixed overhead spending variance.
A) $32,000 F 
B) $0 
C) $4,000 U 
D) $12,000 U 
E) $4,000 F

Quizplus · Accepted Answer

AFOH - BFOH = $998,000 - $994,000 = $4,000 U

Kris Company Calculates Its Predetermined Rates Using Practical Volume, Which