Determine the fixed overhead spending variance, and Label the variance as either favorable or unfavorable Quiz Company

Determine the fixed overhead spending variance, and Label the variance as either favorable or unfavorable

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Quiz Company determined the following standards on January 1. Direct materials Direct labor Variable overhead Fixed overhead 5 lbs. per unit 0.75 DL hrs. per unit 0.75 DL hrs. per unit 0.75 DL hrs. per unit The fixed overhead rate was based on budgeted production of 54,000 units. The actual results for the year were as follows. Units produced Direct materials purchased Direct materials used Direct labor Variable overhead Fixed overhead $2.00 per lb. $18.00 per DL hr. $3.00 per DL hr. $4.00 per DL hr. 53,000 units 274,000 lbs, at $2.50 per lb. 270,300 lbs. 40,100 DL hrs. at $17.95 per DL hr. $122,000 $161,700 Quiz Company determined the following standards on January 1. Direct materials Direct labor Variable overhead Fixed overhead 5 lbs. per unit 0.75 DL hrs. per unit 0.75 DL hrs. per unit 0.75 DL hrs. per unit The fixed overhead rate was based on budgeted production of 54,000 units. The actual results for the year were as follows. Units produced Direct materials purchased Direct materials used Direct labor Variable overhead Fixed overhead $2.00 per lb. $18.00 per DL hr. $3.00 per DL hr. $4.00 per DL hr. 53,000 units 274,000 lbs, at $2.50 per lb. 270,300 lbs. 40,100 DL hrs. at $17.95 per DL hr. $122,000 $161,700

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To determine the fixed overhead spending variance we first need to calculate the budgeted fixed over... View the full answer