Answer (B) is correct . The variable overhead spending variance is found by subtracting actual variable overhead from the product of actual hours and the standard rate.
Answer (A) is incorrect because Reversing the order of subtraction results in $1,000 unfavorable.
Answer (C) is incorrect because Using the budgeted variable overhead and by reversing the order of subtraction results in $1,800 unfavorable.
Answer (D) is incorrect because Using the budgeted variable overhead results in $1,800 favorable.
|
What is Funtime’s variable overhead spending variance?
