1B1S THE JOYT COMPANY MANUFACTURES MAXI DOLLS FOR SALE IN TOY STORES....

113. CSO: 1B1e LOS: 1B1s

The JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this

year, JoyT estimated variable factory overhead of $600,000 and fixed factory overhead of

$400,000. JoyT uses a standard costing system, and factory overhead is allocated to units

produced on the basis of standard direct labor hours. The denominator level of activity

budgeted for this year was 10,000 direct labor hours, and JoyT used 10,300 actual direct

labor hours.

Based on the output accomplished during this year, 9,900 standard direct labor hours

should have been used. Actual variable factory overhead was $596,000, and actual fixed

factory overhead was $410,000 for the year. Based on this information, the variable

overhead spending variance for JoyT for this year was

a. $24,000 unfavorable.

b. $2,000 unfavorable.

c. $4,000 favorable.

d. $22,000 favorable.

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