Question

Miller Mustard Company manufactures single-serve mustard packets used in fast-food restaurants. Stuart Miller, the company’s CFO, prepared the following standard cost card for a box of mustard packets (100 packets in a box), based on expected production of 50,000 boxes.

Direct materials ......... $1.37
Direct labor .......... 0.50
Variable overhead ......... 0.34
Fixed overhead .......... 1.35
Total standard cost per box.... $3.56

During the year, Miller Mustard actually produced 51,075 boxes and incurred $70,000 in fixed manufacturing overhead.

Required
Calculate the fixed overhead spending variance.



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  • CreatedFebruary 21, 2014
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