Burkett Company Uses a Standard Cost System The Variable Overhead Spending Variance Was:
A) $10,000 F
B)

question 128

Multiple Choice

Burkett Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labour hour. The overhead rate is based on 10,000 hours. Actual results were: $$\begin{array} { l r } \text { Standard direct labour hours } & 9,000 \\\text { Actual direct labour hours } & 10,000 \\\text { Fixed overhead } & \$ 190,000 \\\text { Variable overhead } & \$ 185,000\end{array}$$ The variable overhead spending variance was:

• A) $10,000 F
• B) $50,000 U
• C) $35,000 U
• D) $15,000 U

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