What is fixed overhead spending variance

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Reference no: EM131202219

Adobe Company produces electric lawn mowers suitable for home and industrial use. During the year Adobe produced 54,000 mowers, using 163,000 direct labor hours. Adobe’s fixed overhead rate is $12 per direct labor hour and the company budgeted 166,500 direct labor hours. Actual fixed overhead for the year was $1,996,000. What is Adobe’s fixed overhead spending variance?

$2,000 unfavorable

$2,000 favorable

$40,000 favorable

$42,000 favorable

Reference no: EM131202219

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