Moonbeam Company uses a standard cost system for its production process and applies overhead based...
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Accounting
Moonbeam Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Moonbeam produced 5,000 units:
Standard:DLH per unit3.00
Variable overhead per DLH$1.80
Fixed overhead per DLH$3.25
Budgeted variable overhead$27,250
Budgeted fixed overhead$49,500
Actual:Direct labor hours16,000
Variable overhead$31,325
Fixed overhead$49,750
Refer to Moonbeam Company. Using the four-variance approach, what is the fixed overhead spending variance?
a.$2,250 F
b.$1,000 U
c.$250 U
d.$250 F
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