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:

Sexual Values

The beliefs and principles regarding sexual behavior that are held by an individual or within a culture.

Socialize

The process of learning and adopting the norms, customs, and values of society.

Universal

Refers to concepts, conditions, or elements that are common and applicable in all cases, across different cultures, situations, or subjects.

Adolescent Years

A developmental stage that occurs between childhood and adulthood, typically ranging from ages 13 to 19, characterized by significant physical, psychological, and social changes.