Question: Lilac Company's standard fixed overhead cost is $5 per direct labour hour on the basis of budgeted fixed costs of $500,000. The standard allows one direct labour hour per unit. During the current year, the company produced 110,000 units of product, incurred $550,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labour.
Refer to Lilac Company. What is the fixed overhead spending variance for the current year?
Question options:
- $24,000 F
- $30,000 U
- $50,000 U
- $60,000 F