R&N Manufacturing produces music boxes. The fixed overhead rate is $5.10 per direct labor hour, and the company budgeted for 4,600 direct labor hours for the year. During the year, R&N produced 2,500 music boxes using 4,800 direct labor hours. Actual fixed overhead for the year was $23,000. What is the company’s fixed overhead spending variance?

a. $460 favorable

b. $460 unfavorable

c. $1,480 favorable

d. $1,480 unfavorable

Answer rating: 100% (QA)

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