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Adobe Company produces electric lawn mowers suitable for home and industrial use. During the year ...

Adobe Company produces electric lawn mowers suitable for home and industrial use. During the year Adobe produced 54,000 mowers, using 163,000 direct labor hours. Adobe's fixed overhead rate is $12 per direct labor hour and the company budgeted 166,500 direct labor hours. Actual fixed overhead for the year was $1,996,000. What is Adobe's fixed overhead spending variance?

▸ $2,000 favorable

▸ $42,000 favorable

▸ $2,000 unfavorable

▸ $40,000 favorable

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Managerial Accounting

Edition: 4^th

Author: Davis

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Thanks

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