Reference no: EM133075873

Question - The following information is available for the Danske Company:

Denominator hours for May 16,500

Actual hours worked during May 15,200

Standard hours allowed for May 12,600

Flexible budget fixed overhead cost $49,500

Actual fixed overhead costs for May $52,800

Danske Company had total underapplied overhead of $16,500. Additional information is as follows:

Variable Overhead:

Applied based on standard direct labor hours allowed $45,000

Budgeted based on standard direct labor hours 39,500

Fixed Overhead:

Applied based on standard direct labor hours allowed $33,000

Budgeted based on standard direct labor hours 28,500

Required - What is the fixed overhead price (spending) variance for May?