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Which is the variable overhead spending variance

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Problem 1: During the year, Factory A actually produced 10,000 units, used 20,000 direct labour hours and incurred variable overhead of $90,000. The budgeted variable overhead for the year was $88,000 and the standard variable overhead rate is $4.00 per direct labour hour. Which one of the following is the variable overhead spending variance?

Select one:

a. $4,000 unfavourable
b. $6,000 unfavourable
c. $2,000 unfavourable
d. $10,000 unfavourable

Reference no: EM132654351

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