Question: Atkinson Landscaping applies variable overhead based on direct labour hours. At the beginning of the current year, Atkinson had estimated the following: Estimated variable overhead

Atkinson Landscaping applies variable overhead based on direct labour hours. At the beginning of the current year, Atkinson had estimated the following:

Estimated variable overhead $56000

Estimated units of production $10000 units

Standard direct labour hours per unit 2.5 hours

During the year, 11 000 units were produced using a total of 27 200 direct labour hours and actual overhead costs were $60 000. Atkinsons variable overhead spending variance for the year was:

a. $ 672 F

b. $ 928 F

c. $4000 U

d. $ 145 U

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