Wednesday, June 8, 2011

2. What is the variable overhead spending variance?

ACCOUNTING

Multiple Choice

Patel Corporation manufactured 1,000 coolers during October. The following variable overhead data pertain to October.

Budgeted variable overhead cost per unit $ 9.00

Actual variable manufacturing overhead cost $8,400

Flexible-budget amount for variable manufacturing overhead $9,000

Variable manufacturing overhead efficiency variance $180 unfavorable

What is the variable overhead spending variance?

a. $420 unfavorable

b. $600 favorable

c. $600 unfavorable

d. $780 favorable

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