Dubberly Corporation's cost formula for its manufacturing overhead is $30,600 per month plus $64 per machine-hour. For the month of March, the company planned for activity of 7,900 machine-hours, but the actual level of activity was 7,880 machine-hours. The actual manufacturing overhead for the month was $558,610.
-The spending variance for manufacturing overhead in March would be closest to:
A) $22,410 U
B) $22,410 F
C) $23,690 F
D) $23,690 U

Question

Quizplus · Accepted Answer

11ea7761_1762_6a5b_81a5_f929c186d320_TB2580_00 Because the actual expense is greater than the flexible budget, the variance is unfavorable (U).

Dubberly Corporation's Cost Formula for Its Manufacturing Overhead Is $30,600