Multiple Choice
Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:
| Standard: | |
| DLH per unit | 3.00 |
| Variable overhead per DLH | $1.80 |
| Fixed overhead per DLH | $3.25 |
| Budgeted variable overhead | $27,250 |
| Budgeted fixed overhead | $49,500 |
| Actual: | |
| Direct labor hours | 16,000 |
| Variable overhead | $31,325 |
| Fixed overhead | $49,750 |
Refer to Commodore Company.Using the three-variance approach,what is the spending variance?
A) $2,525 U
B) $2,775 U
C) $4,375 U
D) $4,375 F
Correct Answer:
Verified
Correct Answer:
Verified
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