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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:

  1. Standard:DLH per unit3.00
  2. Variable overhead per DLH$1.80
  3. Fixed overhead per DLH$3.25
  4. Budgeted variable overhead$27,250
  5. Budgeted fixed overhead$49,500
  6. Actual:Direct labor hours16,000
  7. Variable overhead$31,325
  8. Fixed overhead$49,750

  1. 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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