Sampson Apparel Inc. Sampson Apparel Inc. Incurred Actual Variable Overhead Expenses of $62

question 56

Multiple Choice

Sampson Apparel Inc.
Sampson Apparel Inc. incurred actual variable overhead expenses of $62 000 in the current year for the production of 10 000 units. Variable overhead was applied at a rate of $2.00 per direct labour hour and 3 direct labour hours were budgeted for each unit. The company used 29 000 direct labour hours for production.
-What was Sampson's variable overhead spending variance?

• A) $4000 U
• B) $4000 F
• C) $2000 U
• D) $2000 F