Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance.
A) $25,450 favorable.
B) $4,000 favorable.
C) $4,000 unfavorable.
D) $21,450 unfavorable..
E) $21,450 favorable.

Question

Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance. 
A) $25,450 favorable. 
B) $4,000 favorable. 
C) $4,000 unfavorable. 
D) $21,450 unfavorable.. 
E) $21,450 favorable.

Quizplus · Accepted Answer

Actual variable overhead costs = $1,140,000
AH × SVR = (81,500 × $14.30) = $1,165,450; Variable overhead spending variance = $25,450 favorable

Fletcher Company Collected the Following Data Regarding Production of One