Underfoot Products Uses Standard Costing Compute the Variable Overhead Spending Variance

question 51

Multiple Choice

Underfoot Products uses standard costing. The following information about overhead was generated during May: $\begin{array}{ll}\text { Standard variable overhead rate } & \$ 2 \text { per machine hour } \\\text { Standard fixed overhead rate } & \$ 1 \text { per machine hour } \\\text { Actual variable overhead costs } & \$ 381,000 \\\text { Actual fixed overhead costs } & \$ 175,000 \\\text { Budgeted fixed overhead costs } & \$ 190,000 \\\text { Standard machine hours per unit produced } & 10 \\\text { Good units produced } & 18,000 \\\text { Actual machine hours } & 200,000\end{array}$ Compute the variable overhead spending variance.

• A) $19,000 (F)
• B) $19,000 (U)
• C) $39,000 (F)
• D) $49,000 (F)

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Definitions:

Primary Condition

The main or most significant illness or disorder diagnosed in a patient, often the cause for seeking medical attention.

Patient Care

The services provided by health professionals to patients with the aim of improving or maintaining health, preventing illness, and treating conditions.

Outpatient Coding

The process of coding the diagnosis, treatment, and procedures for patients who receive services without being admitted to a hospital.

Unclear Diagnosis

A situation where medical test results and symptoms do not clearly indicate the exact nature or cause of a patient’s illness.