R&N Manufacturing produces music boxes.This year's budget was based on the production of 3,000 music boxes using a standard of 3 direct labor hours per music box and $3.10 variable overhead per direct labor hour.R&N incurred 9,500 hours to produce 2,950 music boxes.If actual variable overhead for the year is $32,000, what is R&N's variable overhead spending variance?

Question

Quizplus · Accepted Answer

To calculate the variable overhead spending variance, we need to use the formula:
Actual Variable Overhead - (Actual Hours x Variable Overhead Rate)
= $32,000 - (9,500 x $3.10)
= $32,000 - $29,450
= $2,550 unfavorable
Therefore, the correct answer is B) $2,550 unfavorable.

R&N Manufacturing Produces Music Boxes