Homework answers / question archive / Texas Metal Company has developed standard overhead costs based on a monthly capacity of 180,000 machine hours as follows: Standard costs per unit: Variable portion 2 hours @ $3 = $ 6 Fixed portion 2 hours @ $5 = 10 $16     During November, 90,000 units were scheduled for production, but only 80,000 units were actually produced

Texas Metal Company has developed standard overhead costs based on a monthly capacity of 180,000 machine hours as follows: Standard costs per unit: Variable portion 2 hours @ $3 = $ 6 Fixed portion 2 hours @ $5 = 10 $16     During November, 90,000 units were scheduled for production, but only 80,000 units were actually produced

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Texas Metal Company has developed standard overhead costs based on a monthly capacity of 180,000 machine

hours as follows:

Standard costs per unit:

Variable portion

2 hours @ $3 =

$

6

Fixed portion

2 hours @ $5 =

10

$16

 

 

During November, 90,000 units were scheduled for production, but only 80,000 units were actually produced. The following data relate to

November:

Actual machine hours used were 165,000.

Actual overhead incurred totaled $1,378,000 ($518,000 variable plus $860,000 fixed).

All inventories are carried at standard cost.

Refer to Texas Metal Company. The variable overhead spending variance for November was

A.

$15,000 U.

B.

$23,000 U.

C.

$38,000 F.

D.

$38,000 U.