Adizero Ltd Uses a Standard Cost System The Variable Overhead Spending Variance Was:
A) $10,000 F
B)

Adizero Ltd uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labour hour. The overhead rate is based on 10,000 hours. Actual results were: $\begin{array}{lr}\text { Standard direct labour hours } & 9,000 \\\text { Actual direct labour hours } & 10,000 \\\text { Fixed overhead } & \$ 190,000 \\\text { Variable overhead } & \$ 185,000\end{array}$
The variable overhead spending variance was:

A) $10,000 F
B) $50,000 U
C) $35,000 U
D) $15,000 U

Correct Answer:

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