Suppose you work for the Jedi and help them create their lightsabers with kyber crystals found on Ilum. Master Mace Windu would like an update on the budgets for the lightsabers, including details relating to variances for production. Consider the following for the month of March:

Manufacturing overhead:
Actual units produced: 16 units
Actual direct labour hours: 1,520 hours
Actual Variable Manufacturing Overhead Rate: $130 per Direct Labor Hour
Actual Fixed Manufacturing Overhead $810,000
Budgeted units produced: 15 units
Standard hours per unit: 100 hrs/unit
Standard Variable Manufacturing Overhead Rate: $120 per Direct Labour Hour
Budgeted Fixed Manufacturing Overhead: $840,000

What was the variable manufacturing spending variance?

options:

	$16,000F
	$15,200U
	$16,000U
	$15,200F

Answer rating: 100% (QA)

Variable Overhead Spending Variance is the difference between the standard variable o... View the full answer