What is the variable overhead spending variance

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Adom Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for May when Adom produced 4,500 units: Standard: DLH per unit- 2.50, Variable overhead per DLH- GH¢1.75, Fixed overhead per DLH- GH¢3.10, Budgeted variable overhead- GH¢21,875, Budgeted fixed overhead- GH¢38,750. Actual: Direct labor hours- 10,000, Variable overhead- GH¢26,250, Fixed overhead- GH¢38,000. Get the instant assignment help. What is the variable overhead spending variance?

Reference no: EM133904274

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