The following information is available. Determine the variable overhead spending variance.

Direct labor standard (2 hrs. @ $12.75/hr.)$25.50per finished unit

Actual direct labor hours81,500hrs.

Budgeted units42,000units

Actual finished units produced40,000units

Standard variable OH rate per hour$14.30

Standard variable OH rate (2 hrs. @ $14.30/hr.)$ 28.60 per hour per finished unit

Standard fixed OH rate ($336,000/42,000 units)$8.00per unit

Actual cost of variable overhead costs incurred$1,140,000

Actual cost of fixed overhead costs incurred$338,000

1.