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Variable overhead spending variance

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Pohl Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours:

Variable overhead costs (total):
Maintenance 16,000
Utilities 10,000
Fixed overhead costs (total):
Supervision 20,500
Depreciation 9,500

During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred:

Variable overhead costs (total):
Maintenance 14,620
Utilities 10,710
Fixed overhead costs (total):
Supervision 19,320
Depreciation 9,500

At standard, each unit of finished product requires 1.4 hours of machine time.
Reference: 11-4

The variable overhead spending variance for maintenance cost for June was

3,230 F
3,230 U
1,020 F
1,020 U

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This provides the steps to calculate the variable overhead spending variance

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