Favorable or unfavorable variance

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Sampson Apparel Incorporated incurred actual variable overhead expenses of $62,000 in the current year for the production of 10,000 units. Variable overhead was applied at a rate of $2.00 per direct labor hour and 3 direct labor hours were budgeted for each unit. The company used 29,000 direct labor hours for production. What was Sampson's variable overhead spending variance?

A. $4,000 U

B. $4,000 F.

C. $2,000 U.

D. $2,000 F.

Reference no: EM1363173

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