Multiple Choice
Megan,Inc.uses the following standard costs per unit for one of its products: Direct labor (2 hrs @ $5/hr) $10.Overhead (2 hrs @ $2.50/hr) 5.The flexible budget for overhead is $120,000 plus $1 per direct labor hour (DLH) .Actual data for the month show total overhead costs of $225,000,total fixed overhead of $123,000,85,000 hours worked,and 40,000 units produced.The fixed overhead spending variance is:
A) $0.
B) $3,000 unfavorable.
C) $5,000 unfavorable.
D) $17,000 unfavorable.
E) $25,000 unfavorable.
Correct Answer:

Verified
Correct Answer:
Verified
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