Question: The following standards for the variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output

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

Standard hours per unit of output 7.0 hours
Standard variable overhead rate 11.35 per hour

The following data pertain to operations for the last month:

Actual hours 7,500 hours
Actual total variable overhead cost 87,000
Actual output 1,000 units

What is the variable overhead spending variance for the month?

7,550 F

1,875 F

1,875 U

7,550 U

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