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A company uses a standard cost system and prepared the following budget at normal capacity for January: Direct-labor hours (denominator hours) 24,000 Variable factory overhead
A company uses a standard cost system and prepared the following budget at normal capacity for January: Direct-labor hours (denominator hours) 24,000 Variable factory overhead $ 48,000 Fixed factory overhead $108,000 Total factory overhead per direct-labor hour $ 6.50 Actual data for January were as follows: Direct-labor hours worked 24,000 Total fixed factory overhead $105.000 Total variable overhead $ 52,000 Standard direct-labor hours allowed for capacity attained 23,000 What is the variable overhead spending variance for January? $4,000 favorable $2,000 unfavorable $2,000 favorable $4,000 unfavorable
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