The following standards for variable manufacturing overhead have been establishe
ID: 2464132 • 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 .............. 2.8 hours
Standard variable overhead rate ................ $16.30 per hour
The following data pertain to operations for the last month:
Actual hours ................................................ 7,600 hours
Actual total variable overhead cost ............. $127,300
Actual output ............................................... 2,500 units
What is the variable overhead spending variance for the month?
A) $3,420 U
B) $3,150 F
C) $10,050 U
D) $13,200 U
Explanation / Answer
A) $3,420 U