Problem: The following standards for variable manufacturing overhead have been established for a company that makes only 1 product:
standard hours per unit of output 2.8 hours
standard variable overhead rate $16.30 per hour
The following data pertain to operations for the last month:
Actual hours 7,600
Actual total variable overhead cost $127,300
Actual output 2,500 units
What is the variable overhead spending variance for the month?
A 3420 U
B 3150 F
C 10,050 U
D 13,200 U