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 three-variance approach,what is the spending variance?
A) $23,850 U
B) $23,850 F
C) $14,280 F
D) $14,280 U
Correct Answer:
Verified
Correct Answer:
Verified
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