Question: 63. Baby Frames, Inc. evaluates manufacturing overhead in its factory by using variance analysis. The following information applies to the month of May: Actual Budgeted
63. Baby Frames, Inc. evaluates manufacturing overhead in its factory by using variance analysis. The following information applies to the month of May:
Actual Budgeted Number of frames manufactured 19,000 20,000 Variable overhead costs $4,100 $2 per direct labor hour Fixed overhead costs $22,000 $20,000 Direct labor hours 2,100 0.1 hour per frame What is the fixed overhead spending variance?
a. $1,000 favorable.
b. $1,000 unfavorable.
c. $2,000 favorable.
d. $2,000 unfavorable.
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