The Main Corporation, which applies fixed overhead on the basis of actual direct labor-hours, has provided you
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Question:
The Main Corporation, which applies fixed overhead on the basis of actual direct labor-hours, has provided you with the following information:
Fixed overhead spending variance
$ 5,000 F
Actual direct labor hours used
25,000 Hours
Static budget hours
20,000 Hours
Fixed overhead applied
$ 260,000
What was the actual fixed overhead incurred?
a.
$ 213,000
b.
$ 235,000
c.
$ 265,000
d.
$ 203,000
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