Croissant Company's Standard Fixed Overhead Cost Is $6 Per Direct

Croissant Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows one direct labor hour per unit. During the current year, Crawford produced 110,000 units of product, (within the relevant range of activity) incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor.
What is Croissant's fixed overhead spending variance for the current year?

A) $60,000 (F)
B) $24,000 (F)
C) $30,000 (U)
D) $36,000 (U)

Correct Answer:

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