Reference no: EM131205549
This question is being reposted as a separate question because it has several portions that are not adequately answered: Please provide an explanation of how the answer is calculated. this one asks to calculate the fixed manufacturing overhead spending variance for March, answer options are below at the end of the question.
The Dudley Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor hours. The standard cost card shows that 5 direct labor hours are required per unit. The Dudley Corporation had the following budgeted and actual data for March:
Actual Budgeted
Units Produced 33,900 30,800
Direct Labor Hours 161,800 154,000
Variable Overhead costs 140,500 123,200
Fixed Overhead Costs 80,000 77,000
The fixed manufacturing overhead spending variance for March is:
A. $900 F
B. $3,900 F
C. $3,000 U
D. $7,750 F
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