Cabot Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance.
A) $18,300 favorable.
B) $18,000 favorable.
C) $18,000 unfavorable.
D) $18,300 unfavorable.
E) $14,300 unfavorable.

Question

Quizplus · Accepted Answer

Variable overhead spending variance = (Actual variable overhead - Standard variable overhead)= ($108,000 - $90,000)= $18,000 favorable

Cabot Company Collected the Following Data Regarding Production of One