Xero Company's standard factory overhead rate is $3.75 per direct labor hour (DLH),calculated at 90% capacity = 900 standard DLHs.In December,the company operated at 80% of capacity,or 800 standard DLHs.Budgeted factory overhead at 80% of capacity is $3,150,of which $1,350 is fixed overhead.For December,the actual factory overhead cost was $3,800 for 840 actual DLHs,of which $1,300 was for fixed factory overhead.Under a four-way breakdown (decomposition)of the total overhead variance,what is the variable factory overhead spending variance for December?
A)$50 favorable.
B)$225 favorable.
C)$425 unfavorable.
D)$610 unfavorable.
E)$650 unfavorable.

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The Answer of Xero Company's standard factory overhead rate is $3.75 per direct labor hour (DLH),calculated at 90% capacity = 900 standard DLHs.In December,the company operated at 80% of capacity,or 800 standard DLHs.Budgeted factory overhead at 80% of capacity is $3,150,of which $1,350 is fixed overhead.For December,the actual factory overhead cost was $3,800 for 840 actual DLHs,of which $1,300 was for fixed factory overhead.Under a four-way breakdown (decomposition)of the total overhead variance,what is the variable factory overhead spending variance for December?
A)$50 favorable.
B)$225 favorable.
C)$425 unfavorable.
D)$610 unfavorable.
E)$650 unfavorable.

Xero Company's Standard Factory Overhead Rate Is $3