Question: Cholla Companys standard fixed overhead rate is based on budgeted fixed manufacturing over-head of $10,200 and budgeted production of 30,000 units. Actual results for the
Cholla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing over-head of $10,200 and budgeted production of 30,000 units. Actual results for the month of October reveal that Cholla produced 28,000 units and spent $9,900 on fixed manufacturing overhead costs. Calculate Cholla’s fixed overhead spending variance.
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