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Super Jolt Company produces coffee makers. The fixed overhead rate is $5 per direct labor...

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Accounting

Super Jolt Company produces coffee makers. The fixed overhead rate is $5 per direct labor hour, and the company budgeted for 4,608 direct labor hours for the year. During the year, Super Jolt produced 2,400 coffee makers using 4,700 direct labor hours. Actual fixed overhead for the year was $21,000. What was the company's fixed overhead spending variance?

A. $2,500 favorable

B. $2,500 unfavorable

C. $2,040 unfavorable

D. $2,040 favorable

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