Multiple Choice
Pearce Company
Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:
Standard: | |
DLH per unit | 2.20 |
Variable overhead per DLH | $2.50 |
Fixed overhead per DLH | |
Budgeted variable overhead | $3.00 |
(based on 11,990 DLHs) |
Actual: | |
Units produced | 4,400 |
Direct labor hours | 8,800 |
Variable overhead | $29,950 |
Fixed overhead | $42,300 |
Refer to Pearce Company Using the four-variance approach,what is the variable overhead spending variance?
A) $ 7,950 U
B) $ 25 F
C) $ 7,975 U
D) $10,590 U
Correct Answer:

Verified
Correct Answer:
Verified
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