The NBV Company allocates both variable manufacturing overhead and fixed manufacturing overhead using direct labor hours as the allocation base. NBV expected to produce 40,000 units during the year and to use three direct labor hours to produce each unit. It budgeted $600,000 for variable manufacturing overhead and $1,200,000 for fixed manufacturing overhead. NBV actually produced 35,000 units and used 115,000 direct labor hours during the year. If NBV incurred $650,000 in variable manufacturing overhead costs and $950,000 in fixed manufacturing overhead costs, what is the fixed manufacturing overhead spending variance?

Group of answer choices

$75,000 unfavorable

$250,000 favorable

$100,000 favorable

$150,000 unfavorable

Answer rating: 100% (QA)

Fixed manufacturing overhead spending variance Budgeted Fixed overhea... View the full answer