Wednesday, June 8, 2011

What is the variable overhead spending variance?

ACCOUNTING

Multiple Choice

Kellar Corporation manufactured 1,500 chairs during June. The following variable overhead data pertain to June.

Budgeted variable overhead cost per unit $ 12.00

Actual variable manufacturing overhead cost $16,800

Flexible-budget amount for variable manufacturing overhead $18,000

Variable manufacturing overhead efficiency variance $360 unfavorable

What is the variable overhead spending variance?

a. $840 unfavorable

b. $1,200 favorable

c. $1,200 unfavorable

d. $1,560 favorable

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