Griffen Corporation uses a standard costing system.Information for the month of May is as follows: The overhead rate is based on a normal volume of 12,000 direct labor hours.Standard cost data at 12,000 direct labor hours were as follows:

- What is the fixed overhead spending variance for Griffen?
A) $2,000 U
B) $8,000 U
C) $4,000 U
D) $20,000 U

Question

Griffen Corporation uses a standard costing system.Information for the month of May is as follows: The overhead rate is based on a normal volume of 12,000 direct labor hours.Standard cost data at 12,000 direct labor hours were as follows:

- What is the fixed overhead spending variance for Griffen?

- What is the fixed overhead spending variance for Griffen?
A) $2,000 U 
B) $8,000 U 
C) $4,000 U 
D) $20,000 U

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
$26,000 - $24,000 = $2,000 U

Griffen Corporation Uses a Standard Costing System