question archive The following information is available from the Terry Company:   Actual total factory overhead cost incurred $ 34,000 Actual fixed overhead cost incurred $ 11,400 Budgeted fixed overhead expenses $ 15,000 Actual direct labor hours (DLH) worked 6,000 Standard DLHs for this period’s production (output) 4,600 Standard variable overhead rate per DLH $ 3

The following information is available from the Terry Company:   Actual total factory overhead cost incurred $ 34,000 Actual fixed overhead cost incurred $ 11,400 Budgeted fixed overhead expenses $ 15,000 Actual direct labor hours (DLH) worked 6,000 Standard DLHs for this period’s production (output) 4,600 Standard variable overhead rate per DLH $ 3

Subject:AccountingPrice: Bought3

The following information is available from the Terry Company:

 

Actual total factory overhead cost incurred $ 34,000
Actual fixed overhead cost incurred $ 11,400
Budgeted fixed overhead expenses $ 15,000
Actual direct labor hours (DLH) worked 6,000
Standard DLHs for this period’s production (output) 4,600
Standard variable overhead rate per DLH $ 3.00
Standard fixed overhead rate per DLH $ 2.50

 

What is the variable overhead (VOH) spending variance for Terry Company for the period?

Multiple Choice

A. $3,800 favorable.

B. $4,200 unfavorable.

C. $4,000 unfavorable.

D. $4,600 favorable.

E. $4,600 unfavorable.

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