Reference: 11-13
The Upton Company employs a standard costing system in which variable overhead is assigned to production on the basis of direct labour hours. Data for the month of February include the following:
Variable manufacturing overhead cost incurred: $48,700
Total variable overhead variance: $300 F
Standard hours allowed for actual production: 7,000
Actual direct labour hours worked: 6,840
-The variable overhead spending variance is?
A)$740 U.
B)$740 F.
C)$820 F.
D)$820 U.

Question

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The Answer of Reference: 11-13
The Upton Company employs a standard costing system in which variable overhead is assigned to production on the basis of direct labour hours. Data for the month of February include the following:
Variable manufacturing overhead cost incurred: $48,700
Total variable overhead variance: $300 F
Standard hours allowed for actual production: 7,000
Actual direct labour hours worked: 6,840
-The variable overhead spending variance is?
A)$740 U.
B)$740 F.
C)$820 F.
D)$820 U.

Reference: 11-13 The Upton Company Employs a Standard Costing System in Which