Reference no: EM132973548

Problem 1: Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance.

Direct labor standard (2.00 hrs. @ $14.10/hr.)$28.20 per finished unit

Actual direct labor hours 89,000 hrs.

Budgeted units 46,600 units

Actual finished units produced 43,600 units

Standard variable OH rate (2.00 hrs. @ $14.00/hr.)$28.00 per finished unit

Standard fixed OH rate ($233,000/46,600 units)$5.00 per unit

Actual cost of variable overhead costs incurred$1,216,500

Actual cost of fixed overhead costs incurred$234,900

Multiple Choice

Option 1: $29,500 favorable.
Option 2: $6,000 favorable.
Option 3: $6,000 unfavorable.
Option 4: $25,200 unfavorable.
Option 5: $25,200 favorable.