Baby Frames, Inc. evaluates manufacturing overhead in its factory by using variance analysis. The following information applies to the month of May:
|
Actual |
Budgeted |
|
|
Number of frames manufactured |
19,000 |
20,000 |
|
Variable overhead costs |
$4,100 |
$2 per direct labor hour |
|
Fixed overhead costs |
$22,000 |
$20,000 |
|
Direct labor hours |
2,100 |
0.1 hour per frame |
What is the fixed overhead spending variance?
- $1,000 favorable.
- $1,000 unfavorable.
- $2,000 favorable.
- $2,000 unfavorable.