Kellough Brothers Industries allocates variable manufacturing overhead on the basis of machine hours. Standard and actual costs, rates and hours for the year $20$X$1$ are given below:

Standard

Actual $(2,000$ units$)$

Machine hrs

$2\mathrm{.}25$ hrs$/$unit

$4,100$ hours

Rate

$$3\mathrm{.}00/$machine hr

$$16,180$

The variable manufacturing overhead spending variance is:

Question $14$Answer

a$.$

$$1,200$ favourable

b$.$

$$1,200$ unfavourable

c$.$

$$3,880$ favourable

d$.$

$$3,880$ unfavourable