Zitrik Corporation manufactured 110,000 buckets during February. The variable overhead cost-allocation base is $5.45 per machine-hour. The following variable overhead data pertain to February:

What is the variable overhead spending variance?

Question

Zitrik Corporation manufactured 110,000 buckets during February. The variable overhead cost-allocation base is $5.45 per machine-hour. The following variable overhead data pertain to February:

What is the variable overhead spending variance?

Quizplus · Accepted Answer

Variable overhead spending variance = ($5.55 - $5.45) × 10,500 mh = $1,050 unfavorable

Zitrik Corporation Manufactured 110,000 Buckets During February