Crawford Company's Standard Fixed Overhead Cost Is $6 Per Direct

question 52

Multiple Choice

Crawford Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000.The standard allows one direct labor hour per unit.During 2006, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor. What is Crawford's fixed overhead spending variance for 2011?

• A) $60,000 (F)
• B) $24,000 (F)
• C) $36,000 (U)
• D) $30,000 (U)

---

Definitions:

Near Field Communications

A set of communication protocols that enable two electronic devices, one of which is often a portable device such as a smartphone, to establish communication by bringing them within a few centimeters of each other.

Showrooming

The practice of examining merchandise in a traditional brick-and-mortar retail store without purchasing it, then shopping online to buy the same item at a lower price.

Customer Churn

The rate at which customers stop doing business with an entity, often used to gauge a company's ability to retain its customers over time.

High-End CRM

Customer Relationship Management systems that offer advanced features and functionalities targeted at enterprises requiring complex customer interaction tools and data analytics.