15

QUESTION 15 Classic Tees, Inc. manufactures tshirts with the following standard costs: Standard Standard Quantity/Hours Price/Rate Direct materials (fabric) 0.5 m $8.00 / m Direct labor 0.6 $18.00/hr Variable overhead 0.6 $4.00/hr Classic Tees produced 3,000 shirts in May using 1,525 meters of direct material and 1,775 direct.labor hours. During the month, the company purchased 1,600 meters of the direct material at 58.25 per meter. The actual direct labor rate was $18.25 per hour and the actual variable overhead rate was $3.90 per hour. Calculate the overall spending variance for variable manufacturing overhead. a. $277.50 b. $180 F Oc. $277.50 F d. $180