Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March:

Actual Static Budget

Production 25,000 units 24,000 units

Machine-hours 6,100 hours 6,000 hours

Fixed overhead costs for March $123,000 $120,000

1) What is the amount of fixed overhead allocated to production?

		$120,000
		$122,000
		$123,000
		$125,000

2) What is the fixed overhead spending variance?

$1,000 unfavorable
		$2,000 favorable
		$3,000 unfavorable
		$5,000 favorable

Answer rating: 100% (QA)

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