Formidable Company Collected the Following Information: Standard Costs Per Unit

question 62

Multiple Choice

Formidable Company collected the following information: Standard costs per unit:
Variable overhead 4 machine hours @ $6 per machine hour
Fixed overhead 4 machine hours @ $10 per machine hour
Actual output 20,000 units
Denominator (normal capacity) output 21,000 units
Actual machine hours 79,000 machine hours
Actual variable overhead cost $540,000
Actual fixed overhead cost $810,000
Using the three variance method, what is the spending variance?

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

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Definitions:

Major Depression

A mental health disorder characterized by persistent feelings of sadness, loss of interest in activities, and other symptoms that interfere with daily life.

Mental Illness

A broad range of mental health conditions that affect mood, thinking, and behavior, including disorders such as depression, anxiety, and schizophrenia.

Diagnosed

The process of identifying a disease or condition from its signs and symptoms through the use of diagnostic tests, assessments, and examinations.

Socially Unusual Behavior

Actions or behaviors that deviate significantly from the societal norms or expectations within a particular culture or community.