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Croissant 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 2016, Crawford produced 110,000 units of product, (within the relevant range of activity) incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor.
What is Croissant's fixed overhead spending variance for 2016?
Net Income
The amount of total revenues minus total expenses, representing the profit a company has generated over a specific period.
Bonus
Additional compensation given to employees or executives beyond their regular salary, often as a reward for achieving certain performance targets.
Pre-bonus Income
The total revenue or profit earned by an individual or entity before any bonuses are issued or calculated.
Partnership Income
The earnings distributed to partners of a partnership based on the terms of the partnership agreement.
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