Radon Corporation manufactured 36,000 grooming kits for horses during March. The following fixed overhead data pertain...
Radon Corporation manufactured 36,000 grooming kits for horses during March. The following fixed overhead data pertain to March:
| Actual | Static Budget | |
| Production | 36,000 units | 33,000 units |
| Machine-hours | 19,900 hours | 19,800 hours |
| Fixed overhead costs for March | $444,800 | $435,600 |
What is the fixed overhead spending variance?
Homework Answers
Fixed overhead spending variance = Actual fixed overhead cost - Budgeted fixed overhead cost
= $444,800 - $435,600
= $9,200 unfavorable
Fixed overhead spending variance is unfavorable because actual overhead is more than the budgeted overhead.
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