Lazy Guy Corporation manufactured 6,000 chairs during June. The following variable overhead data relates to June:

What is the variable overhead spending variance?
A) $5,110 favorable
B) $5,900 favorable
C) $5,900 unfavorable
D) $5,110 unfavorable

Question

Lazy Guy Corporation manufactured 6,000 chairs during June. The following variable overhead data relates to June:

What is the variable overhead spending variance?
A) $5,110 favorable 
B) $5,900 favorable 
C) $5,900 unfavorable 
D) $5,110 unfavorable

Quizplus · Accepted Answer

Variable overhead flexible-budget variance = $52,800 - $46,900 = $5,900 (U)
Variable overhead spending variance = $5,900 (U) - $790 (U) = $5,110 (U)

Lazy Guy Corporation Manufactured 6,000 Chairs During June