| 100.Zero Company's standard factory overhead rate is $3.75 per direct labor hour (DLH),calculated at 90% capacity = 900 standard DLHs. In December, the companyoperated at 80% of capacity, or 800 standard DLHs. Budgeted factory overhead at80% of capacity is $3,150, of which $1,350 is fixed overhead. For December, theactual factory overhead cost was $3,800 for 840 actual DLHs, of which $1,300 wasfor fixed factory overhead.Assuming the use of a two-way breakdown (decomposition) of the total overheadvariance, what is thefactory overhead efficiency variancefor Zero Company inDecember?A. N/A—this variance does not exist under a two-way breakdown of the totaloveread variance.B. $90unfavorable.C. $150unfavorable.D. $225favorable.E. $425unfavorable.
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What was the fixed factory overhead spending variance for Insight Company in December
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