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Question - The Uptown Company uses standard costing. Variable overhead is applied at $8 per direct labor hour. Data for the month of September follows:
Actual variable costs $78,000
Standard hours allowed for actual production 10,000
Actual Hours worked 9,800
How much is the controllable overhead spending variance?
$2,000 favorable
$400 favorable
$400 unfavorable
$2,000 unfavorable
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