The following standards for variable manufacturing overhead have been establishe
ID: 2432673 • Letter: T
Question
The following standards for variable manufacturing overhead have been established for a company that makes only one product:
Standard hours per unit of output -------- 5.0 hours
Standard variable overhead rate --------- $13.45 per hour
The following data pertain to operations for the last month:
Actual hours ------------------------------------------------ 3,300 hours
Actual total variable manufacturing overhead cost --- $45,375
Actual output ----------------------------------------------- 800 units
What is the variable overhead spending variance for the month?
$1,200F
$9,625F
$8,425F
$990U
a.$1,200F
b.$9,625F
c.$8,425F
d.$990U
Explanation / Answer
#NAME? Variable overhead spending variance (Actual rate - standard rate)*actual hours (45,375 - 13.45*3300) 990 U answer answer) option D