Question

Oscanda Accessories Corporation manufactured 21,400 travel bags during March. The following fixed overhead data pertain to March: Actual Static Budget Production 21,400 units 22,000 units Machine-hours 3,400 hours 4,400 hours Fixed overhead cost for March $176,300 $184,800 What is the amount of fixed overhead spending variance

Answer 1

$8,500 favorable

Step-by-step explanation:

The computation of the fixed overhead spending variance is shown below

= Budgeted fixed overhead - actual fixed overhead

= $184,800 - $176,300

= $8,500 favorable

We simply deduct the actual fixed overhead from the budgeted one so that the fixed overhead spending variance could come