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Variable overhead spending variance - Dagle Corporation

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Question 1:
Dagle Corporation has provided the following data for a recent month:

Budgeted production 4,700 motors
Actual production 5,100 motors
Standard machine-hours per motor 6 machine-hours
Budgeted machine-hours (6 × 4,700) 28,200 machine-hours
Standard machine-hours allowed for the actual output (6 × 5,100) 30,600 machine-hours
Actual machine-hours 24,690 machine-hours

Budgeted variable overhead cost per machine-hour:

Indirect labor $5.6 per machine-hour
Power $2.2 per machine-hour
Actual total variable overhead costs:
Indirect labor $151,406
Power $56,300

The variable overhead spending variance for power is:

$3,697 F
$3,697 U
$28,200 U
$1,982 U

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The solution explains how to calculate the variable overhead spending variance

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Variable overhead spending variance = Actual variable overhead - (Actual ...

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