Denominator hours for May 23,000 Actual hours worked during May 17,600 Standard

Question

  Denominator hours for May 23,000       Actual hours worked during May 17,600       Standard hours allowed for May 18,400       Flexible budget fixed overhead cost $ 69,000       Actual fixed overhead costs for May $ 72,800              
    What is the fixed overhead spending (price) variance for May?     $3,800 favorable. $13,800 favorable. $3,800 unfavorable. $13,800 unfavorable.   Denominator hours for May 23,000       Actual hours worked during May 17,600       Standard hours allowed for May 18,400       Flexible budget fixed overhead cost $ 69,000       Actual fixed overhead costs for May $ 72,800   

Explanation / Answer

Fixed overhead spending (price) variance for May = 69000-72800

Flexible budget fixed overhead cost $ 69,000 LESS:Actual fixed overhead costs for May $ 72,800

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