Tycoon Manufacturing Uses a Standard Costing System The Combined Fixed and Variable Overhead Spending Variance Was:
A)

Tycoon Manufacturing uses a standard costing system. The standard time to produce one unit is 4 hours, and normal production is 5,000 units monthly. Overhead costs were estimated to be $250,000. The standard variable overhead rate is $5 per machine hour. During October the following results were recorded:
$\begin{array}{lr}\text { Units produced } & 4,900 \\\text { Units sold } & 4,600 \\\text { Machine hours required } & 20,500 \\\text { Actual overhead cost } & \$ 248,000\end{array}$
The combined fixed and variable overhead spending variance was:

A) $1,000 U
B) $2,000 F
C) $4,500 U
D) $4,500 F

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free