Somalian Corporation uses a standard costing system. Information for the month of May is as follows: The factory overhead rate is based on a normal volume of 12,000 direct labor hours. Standard cost data at 12,000 direct labor hours were as follows:
What is the fixed overhead spending variance for Somalian?
A) $4,000 (
B) $8,000 (
C) $2,000 (
D) $20,000 (

Question

Somalian Corporation uses a standard costing system. Information for the month of May is as follows:  The factory overhead rate is based on a normal volume of 12,000 direct labor hours. Standard cost data at 12,000 direct labor hours were as follows:
 What is the fixed overhead spending variance for Somalian?
A) $4,000 (
B) $8,000 (
C) $2,000 (
D) $20,000 (

Quizplus · Accepted Answer

The Answer of Somalian Corporation uses a standard costing system. Information for the month of May is as follows:  The factory overhead rate is based on a normal volume of 12,000 direct labor hours. Standard cost data at 12,000 direct labor hours were as follows:
 What is the fixed overhead spending variance for Somalian?
A) $4,000 (
B) $8,000 (
C) $2,000 (
D) $20,000 (

Somalian Corporation Uses a Standard Costing System