Croissant Company's Standard Fixed Overhead Cost Is $6 Per Direct

question 30

Multiple Choice

Croissant Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows one direct labor hour per unit. During the current year, Crawford produced 110,000 units of product, (within the relevant range of activity) incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor.
What is Croissant's fixed overhead spending variance for the current year?

• A)$60,000 (F)
• B)$24,000 (F)
• C)$30,000 (U)
• D)$36,000 (U)

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