Question 26

Reference: 10-11

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output 1.6 hours

Standard variable overhead rate $11.55 per hour

The following data pertain to operations for the last month:

Actual hours 4,900 hours

Actual total variable overhead cost $58,310

Actual output 3,000 units

What was the variable overhead spending variance for the month?

Question 26 options:

A)

$1,715 unfavourable.

B)

$2,870 unfavourable.

C)

$1,715 favourable.

D)

$2,870 favourable.