Find variable overhead spending variance for month

Reference no: EM13160222

Suski Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:

Budgeted level of activity ...................................... 7,400 MHs
Actual level of activity .......................................... 7,500 MHs
Cost formula for variable overhead cost ............... $5.90 per MH
Budgeted fixed overhead cost ............................... $60,000
Actual total variable overhead ............................... $42,750
Actual total fixed overhead ................................... $61,000

What was the variable overhead spending variance for the month?

A) $1,500 favorable
B) $590 unfavorable
C) $910 favorable

Reference no: EM13160222

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