Kris Company Calculates Its Predetermined Rates Using Practical Volume, Which

Multiple Choice

Kris Company calculates its predetermined rates using practical volume, which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead.The actual results for the year are as follows:

-
Calculate the variable overhead spending variance.

A) $69,250 U
B) $69,250 F
C) $24,000 U
D) $40,000 F
E) None of these.