This Question: 1 pt 8 of 16 (0 complete)Y This Test: 16 pts Clark overhead costs

Question

This Question: 1 pt 8 of 16 (0 complete)Y This Test: 16 pts Clark overhead costs is $300,000. Machine hours are the cost driver of all overhead costs. The static budget is based on 60,000 machine hours Ai 60, the company produces 40,000 units. The following data is available: Actual units produced and sold Actual machine hours Actual variable overhead costs Actual fixed overhead costs 42,000 64,000 $185,600 $302.400 O A. $2,400 Favorable O B. $2,400 Unfavorable O c. $1,000 Unfavorable O D. $1,000 Favorable 10

Explanation / Answer

B) $2,400 Unfavorable

Fixed overhead spending variance = actual - budgeted fixed overhead

= $302,400 - $300,000

= $2,400 Unfavorable

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