Exhibit 19-9 The following data is known for Lyman, Inc.:
Standards:

- Refer to Exhibit 19-9. Using the information above, compute the variable manufacturing overhead spending variance for Lyman, Inc.

Question

Exhibit 19-9 The following data is known for Lyman, Inc.:
 Standards:

- Refer to Exhibit 19-9. Using the information above, compute the variable manufacturing overhead spending variance for Lyman, Inc.

Quizplus · Accepted Answer

Since the actual variable manufacturing overhead is higher than the standard variable manufacturing overhead, the spending variance is unfavorable.

Variable manufacturing overhead spending variance = Actual variable manufacturing overhead - (Standard variable manufacturing overhead × Actual input)
= $78,000 - ($12 × 6,500) = $6,500 unfavorable

Exhibit 19-9 the Following Data Is Known for Lyman, Inc