The following information is available from the Tomoto Company: Assuming that Tomoto uses a three-variance analysis of overhead variances, what is the budget (spending) variance?

Question

The following information is available from the Tomoto Company:  Assuming that Tomoto uses a three-variance analysis of overhead variances, what is the budget (spending) variance?

Quizplus · Accepted Answer

Budget variance = Actual factory overhead incurred - Budgeted factory overhead for actual hours worked
Budget variance = $16,500 - $17,100*
Budget variance = $600 F (Actual is less than budget so variance is unfavorable)
 11eb16ac_e008_5323_984d_392e1d6e78eb_TB6154_00

The Following Information Is Available from the Tomoto Company