Castleton Corporation manufactured 36,500 units during March. The following fixed overhead data relates to March: Actual Budgeted Production 36,500 units 35,000 units Machine-hours 5,400 hours 5,250 hours Fixed overhead costs for March $139,510 $131,250 What is the fixed overhead spending variance?

Question

Business

Allie Anderson

9 July, 10:33

Castleton Corporation manufactured 36,500 units during March. The following fixed overhead data relates to March: Actual Budgeted Production 36,500 units 35,000 units Machine-hours 5,400 hours 5,250 hours Fixed overhead costs for March $139,510 $131,250 What is the fixed overhead spending variance?

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Noe · Answer 1

Spending variance = $8260 unfavorable

Explanation:

The fixed overhead spending variance is the difference between budgeted overhead and actual overhead incurred. It shows he amount by the budgeted and actual overhead differ.

Budgeted overhead $131,250

Actual overhead $139,510

Variance 8260 unfavorable