question archive Bat Company's flexible budget for the units manufactured in May shows $15,650 of total factory overhead; this output level represents 70% of available capacity
Bat Company's flexible budget for the units manufactured in May shows $15,650 of total factory overhead; this output level represents 70% of available capacity
Subject:AccountingPrice: Bought3
Bat Company's flexible budget for the units manufactured in May shows $15,650 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company used 6,000 DLHs and incurred $18,900 of total factory overhead cost during May, including $7,600 for fixed factory overhead.
What is the fixed factory overhead spending variance (to the nearest whole dollar) in May for Bat Company? (Round your intermediate calculations to 2 decimal places; Round your final answer to zero decimal places.)
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Multiple Choice
A. $0.
B. $1,039 favorable.
C. $919 unfavorable.
D. $1,419 unfavorable.
E. $1,219 unfavorable.
