Underfoot Products Uses Standard Costing Compute the Variable Overhead Spending Variance

question 8

Multiple Choice

Underfoot Products uses standard costing. The following information about overhead was generated during May: $\begin{array}{ll}\text { Standard variable overheadrate } & \$ 2 \text { per machine hour } \\\text { Standard fixed overhead rate } & \$ 1 \text { per machine hour } \\\text { Actual variable overhead costs } & \$ 389,000 \\\text { Actual fixed overhead costs } & \$ 175,000 \\\text { Budgeted fixed overhead costs } & \$ 190,000 \\\text { Standard machine hours per urit produced } & 10 \\\text { Good urits prochuced } & 18,000 \\\text { Actual machine hours } & 200,000\end{array}$
Compute the variable overhead spending variance.

• A) $11,000 (F)
• B) $11,000 (U)
• C) $31,000 (F)
• D) $41,000 (F)

---

Definitions:

Chain Organizations

Entities or businesses that operate multiple outlets under the same brand or ownership, often in different locations.

Supply Chain

The interconnected network of entities involved in the production, handling, and distribution of goods and services from raw materials to end consumers.

Logistics Manager

A professional responsible for overseeing the supply chain operations, ensuring efficient delivery of goods.

Retail Buyer

A professional responsible for selecting and purchasing goods for resale in retail outlets.