Cannon Company's Standard Fixed Overhead Cost Is $5 Per Direct

question 15

Multiple Choice

Cannon Company's standard fixed overhead cost is $5 per direct labour hour on the basis of budgeted fixed costs of $500,000. The standard allows one direct labour hour per unit. During the current year, Cannon produced 110,000 units of product, incurred $550,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labour.
-Refer to the Figure.What is Cannon's fixed overhead spending variance for the current year?

• A)$24,000 (F)
• B)$30,000 (U)
• C)$50,000 (U)
• D)$60,000 (F)

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Definitions:

Epiphyseal Lines

The remnants of the epiphyseal plate in long bones, seen in adults, indicating the previous site of longitudinal growth during childhood and adolescence.

Articular Cartilage

The smooth, white tissue that covers the ends of bones where they come together to form joints.

Epiphysis

The terminal section of a lengthy bone that originally develops independently from the main body.

Spongy Bone

Spongy bone, also known as cancellous bone, is less dense bone that is found at the ends of long bones and in the inner layers of other bones, characterized by a porous structure.