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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