Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 8 - Flexible Budgets, Overhead Cost Variances, and Management Control - Assignment Material - Exercises - Page 319: 8-26(1)

Answer

Fixed Overhead Spending Variance: \$600 U (Unfavorable)

Work Step by Step

Fixed Overhead Spending Variance: Fixed Overhead Spending Variance = Actual Fixed Overhead - Budgeted Fixed Overhead Fixed Overhead Spending Variance = \$11,400 - \$10,800 = \$600 U (Unfavorable)
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