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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

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The solution explains how to calculate the variable overhead spending variance

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