Reference no: EM132754774

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

Standard quantity per unit of output 1.6hours

Standard variable overhead rate $11.55per hour

The following data pertain to operations for the last month:

Actual hours4,900hours

Actual total variable overhead cost$58,310

Actual output3,000units

Problem 1: What is the variable overhead spending variance for the month?

Multiple Choice

Option 1: $1,715 U.
Option 2: $1,715 F.
Option 3: $2,870 U.
Option 4: $2,870 F.