Jesse is the office manager of a large firm called Law & Legal Services, Inc. At Law & Legal Services, overhead is allocated to client accounts using hours billed. Jesse found the following information related to overhead for the previous month:
∙ Spending variance = $25,000 favorable
∙ Volume variance = $10,000 unfavorable
∙ Actual overhead = $70,000
∙ Actual hours billed = 6,000 hours