The Following Information Is Available from the Ryan Company Assuming That Ryan Uses a Three-Way Analysis of Overhead Variances,what

question 95

Multiple Choice

The following information is available from the Ryan Company:
$\begin{array}{ll}\text { Actual } \mathrm{OH} & \$ 15,00 \\\text { Fixed } \mathrm{OH} \text { expenses, actual } & \$ 7,200 \\\text { Fixed } \mathrm{OH} \text { expenses, budgeted } & \$ 7,000 \\\text { Actual hours } & 3,500 \\\text { Standard hours } & 3,800 \\\text { Variable OH rate per DLH } & \$ 2.50\end{array}$

Assuming that Ryan uses a three-way analysis of overhead variances,what is the overhead spending variance?

• A)$ 750 F
• B)$ 750 U
• C)$ 950 F
• D)$1,500 U

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Definitions:

Income Taxes Payable

Liabilities owed to the government for income taxes, not yet paid by the company.

Income Tax Expense

The total amount of income tax a company is obligated to pay to the government, reported on its income statement.

Investing Activities

Financial actions that involve the purchase of long-term assets, securities, or other investments to generate future income or value.

Sale of Equipment

The process of disposing or selling a company's equipment assets, which may result in a gain or loss reflected in the income statement.