Zennick Fashion Products uses standard costs for their manufacturing division. Standards specify 3.0 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data:
At the end of the year, actual data were as follows:
At the end of the year, the spending (price)variance for variable overhead is favorable.

Question

Zennick Fashion Products uses standard costs for their manufacturing division. Standards specify 3.0 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data:
  At the end of the year, actual data were as follows:
  At the end of the year, the spending (price)variance for variable overhead is favorable.

Quizplus · Accepted Answer

The Answer of Zennick Fashion Products uses standard costs for their manufacturing division. Standards specify 3.0 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data:
  At the end of the year, actual data were as follows:
  At the end of the year, the spending (price)variance for variable overhead is favorable.

Zennick Fashion Products Uses Standard Costs for Their Manufacturing Division