Reference no: EM131130363
Border Company employs a standard costing system and uses a flexible budget to predict overhead costs at various levels of activity. For the most recent year, Border had total budgeted overhead costs of $160,000 for 10,000 direct labor hours and $240,000 for 20,000 direct labor hours. During the most recent year, Border generated the following data:
Actual number of units produced ...................... 2,000 units
Actual variable overhead costs ........................ $135,000
Variable overhead efficiency variance ................. $3,200
Favorable Standard direct labor hours for each unit produced .... 8.5 hours
Calculate the variable overhead spending variance for the most recent year. If the variance is favorable, enter a capital F after your number with a space between the number and the F (i.e., 10,000 F). If the variance is unfavorable, enter a capital U after your number with a space between the number and the U (i.e., 10,000 U). Do not use decimals in your answer.
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