The Following Information Is Available from the Terry Company What Is the Total Overhead Spending Variance for Terry Company

question 36

Multiple Choice

The following information is available from the Terry Company: $\begin{array}{lrr}\text { Actual total factory overhead cost incurred } & \$ 25,000 \\\text { Actual fixed overhead cost incurred } & \$ 10,400 \\\text { Budgeted fixed overhead expenses } & \$ 11,000 \\\text { Actual direct labor hours (DLH) worked } & 4,400 \\\text { Standard DLHs for this period's production (output) } & 4,000 \\\text { Standard variable overhead rate per DLH } & \$ 3.00 \\\text { Standard fixed overhead rate per DLH } & \$ 2.50\end{array}$ What is the total overhead spending variance for Terry Company for the period, to the nearest whole dollar?

• A) $800 unfavorable.
• B) $1,000 unfavorable.
• C) $1,200 unfavorable.
• D) $1,400 unfavorable.
• E) $2,000 unfavorable.

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