Framlingham uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year:
The following were the actual results:
Calculate the variable overhead spending variance.
A) $25 000 favourable
B) $50 000 favourable
C) $25 000 unfavourable
D) $10 000 unfavourable

Question

Framlingham uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year: 
The following were the actual results: 
Calculate the variable overhead spending variance.
A) $25 000 favourable 
B) $50 000 favourable 
C) $25 000 unfavourable 
D) $10 000 unfavourable

Quizplus · Accepted Answer

The Answer of Framlingham uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year: 
The following were the actual results: 
Calculate the variable overhead spending variance.
A) $25 000 favourable 
B) $50 000 favourable 
C) $25 000 unfavourable 
D) $10 000 unfavourable

Framlingham Uses a Standard Costing System for Product Costing