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Moonbeam Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Moonbeam produced 5,000 units:
Standard:'
DLH per unit3.00Variable overhead per DLH$1.80Fixed overhead per DLH$3.25Budgeted variable overhead$27,250Budgeted fixed overhead$49,500
Actual:
Direct labor hours16,000Variable overhead$31,325Fixed overhead$49,750
Question 1: Refer to Moonbeam Company. Using the four-variance approach, what is the fixed overhead spending variance?
a.$2,250 F
b.$1,000 U
c.$ 250 U
d.$ 250 F
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