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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Karl Marx, a 19th-century philosopher and economist known for his ideas about capitalism and communism.

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