Tycoon Manufacturing uses a standard costing system. The standard time to produce one unit is 4 hours, and normal production is 5,000 units monthly. Overhead costs were estimated to be $250,000. The standard variable overhead rate is $5 per machine hour. During October the following results were recorded:
$\begin{array}{lr}
\text { Units produced } & 4,900 \
\text { Units sold } & 4,600 \
\text { Machine hours required } & 20,500 \
\text { Actual overhead cost } & \$ 248,000
\end{array}$
The combined fixed and variable overhead spending variance was:
A) $1,000 U
B) $2,000 F
C) $4,500 U
D) $4,500 F

Question

Tycoon Manufacturing uses a standard costing system. The standard time to produce one unit is 4 hours, and normal production is 5,000 units monthly. Overhead costs were estimated to be $250,000. The standard variable overhead rate is $5 per machine hour. During October the following results were recorded: 
$\begin{array}{lr}
\text { Units produced } & 4,900 \
\text { Units sold } & 4,600 \
\text { Machine hours required } & 20,500 \
\text { Actual overhead cost } & \$ 248,000
\end{array}$
 The combined fixed and variable overhead spending variance was:
A) $1,000 U
B) $2,000 F
C) $4,500 U
D) $4,500 F

Quizplus · Accepted Answer

The Answer of Tycoon Manufacturing uses a standard costing system. The standard time to produce one unit is 4 hours, and normal production is 5,000 units monthly. Overhead costs were estimated to be $250,000. The standard variable overhead rate is $5 per machine hour. During October the following results were recorded: 
$\begin{array}{lr}
\text { Units produced } & 4,900 \
\text { Units sold } & 4,600 \
\text { Machine hours required } & 20,500 \
\text { Actual overhead cost } & \$ 248,000
\end{array}$
 The combined fixed and variable overhead spending variance was:
A) $1,000 U
B) $2,000 F
C) $4,500 U
D) $4,500 F

Tycoon Manufacturing Uses a Standard Costing System The Combined Fixed and Variable Overhead Spending Variance Was: A)

Tycoon Manufacturing Uses a Standard Costing System The Combined Fixed and Variable Overhead Spending Variance Was:
A)