20

Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,140 units, but its actual level of activity was 5,090 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

	Fixed element per month			Variable element per unit
Revenue		-		$	40.00
Direct labor	$	0		$	5.90
Direct materials		0			16.10
Manufacturing overhead		41,900			1.70
Selling and administrative expenses		23,100			0.60
Total expenses	$	65,000		$	24.30

Actual results for May:

Revenue	$	198,210
Direct labor	$	28,965
Direct materials	$	80,665
Manufacturing overhead	$	49,905
Selling and administrative expenses	$	23,080

The spending variance for manufacturing overhead in May would be closest to: