Universal Pty Ltd used a standard cost system to prepare the following budget at normal operating capacity for the month of January 2007.
Actual data for January 2007 were as follows:
Using the two-way analysis of overhead variances, what is the total of the fixed budget variance and the variable overhead spending variance for January 2007?
A) $3000 favourable
B) $5000 favourable
C) $9000 favourable
D) $3000 unfavourable

Question

Universal Pty Ltd used a standard cost system to prepare the following budget at normal operating capacity for the month of January 2007. 
Actual data for January 2007 were as follows: 
Using the two-way analysis of overhead variances, what is the total of the fixed budget variance and the variable overhead spending variance for January 2007?
A) $3000 favourable 
B) $5000 favourable 
C) $9000 favourable 
D) $3000 unfavourable

Quizplus · Accepted Answer

The Answer of Universal Pty Ltd used a standard cost system to prepare the following budget at normal operating capacity for the month of January 2007. 
Actual data for January 2007 were as follows: 
Using the two-way analysis of overhead variances, what is the total of the fixed budget variance and the variable overhead spending variance for January 2007?
A) $3000 favourable 
B) $5000 favourable 
C) $9000 favourable 
D) $3000 unfavourable

Universal Pty Ltd Used a Standard Cost System to Prepare