# The answer to Variable overhead spending variance

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

https://brainmass.com/business/accounting/the-answer-to-variable-overhead-spending-variance-127563

#### Solution Summary

The solution explains how to calculate the variable overhead spending variance

$2.19