The following information pertains to the Braun Company for March: Using the four-variance method of factory overhead variance analysis, what is the spending variance?

Question

The following information pertains to the Braun Company for March:  Using the four-variance method of factory overhead variance analysis, what is the spending variance?

Quizplus · Accepted Answer

Spending variance = actual variable overhead - (actual hours worked x standard variable rate per hour)
Spending variance = $22,200 - (10,500 x $2)
Spending variance = $22,200 - $21,000
Spending variance = $1,200 Unfavorable (because actual exceeded standard)

The Following Information Pertains to the Braun Company for March