Multiple Choice
Buckingham Company
Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Buckingham produced 4,500 units:
| Standard: | |
| DLH per unit | 2.50 |
| Variable overhead per DLH | $1.75 |
| Fixed overhead per DLH | $3.10 |
| Budgeted variable overhead | $21,875 |
| Budgeted fixed overhead | $38,750 |
| Actual: | |
| Direct labor hours | 10,000 |
| Variable overhead | $26,250 |
| Fixed overhead | $38,000 |
Refer to Buckingham Company.Using the three-variance approach,what is the spending variance?
A) $ 4,375 U
B) $ 3,625 F
C) $ 8,000 U
D) $15,750 U
Correct Answer:
Verified
Correct Answer:
Verified
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