Pearl Co.produces pearl necklaces and uses a standard cost system.Fixed overhead is applied to production at a rate of $34 per unit,based on budgeted production of 3,000 per month.During December,Pearl produced 3,100 pearl necklaces.Fixed overhead incurred totaled $114,940.Calculate the:
a.fixed overhead spending variance.
b.fixed overhead volume variance.
c.over- or underapplied fixed overhead.

Question

Quizplus · Accepted Answer

The Answer of Pearl Co.produces pearl necklaces and uses a standard cost system.Fixed overhead is applied to production at a rate of $34 per unit,based on budgeted production of 3,000 per month.During December,Pearl produced 3,100 pearl necklaces.Fixed overhead incurred totaled $114,940.Calculate the:
a.fixed overhead spending variance.
b.fixed overhead volume variance.
c.over- or underapplied fixed overhead.

Pearl CoProduces Pearl Necklaces and Uses a Standard Cost System