The following standards for variable manufacturing overhead, Ask an Expert

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

Standard hours per unit of output 5.6 hours

Standard variable overhead rate $12.00 per hour

The following data pertain to operations for the last month:

Actual hours 2,600 hours

Actual total variable overhead cost $31,330

Actual output 400 units

What is the variable overhead spending variance for the month?

a. $112 F

b. $130 U

c. $4,450 U

d. $4,338 U

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9403828

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