Figure 11-4. 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:
Refer to Figure 11-4.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

Figure 11-4. 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:
 Refer to Figure 11-4.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

The Answer of Figure 11-4. 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:
 Refer to Figure 11-4.Calculate the fixed overhead spending variance.
A)$32,000 F 
B)$0 
C)$4,000 U 
D)$12,000 U 
E)$4,000 F