Question 1 (2 points) H&B Inc. uses a standard cost system and calculates their application rates using direct labour hours. This year the company had the following standards: Standard direct labour hours per unit: 2 hours Variable overhead application rate: $3 per direct labour hour Fixed overhead application rate: $4 per direct labour hour The company also had the following actuals: Production: 14,000 units Variable overhead: $97,944 Fixed overhead: $134,288 Total direct labour hours: 30,800 What is the variable overhead spending variance? a) $5,544 unfavourable b) $5,544 favourable Oc) $13,944 favourable Od) $13,944 unfavourable