A manufacturing company allocates variable overhead (VOH) using machine hours. The budget (standard) machine time is 2 hours per output unit. The overhead allocation rate is $10 VOH per machine hour. Actual results for the year appear below: $ 189,945 VOH 18,900 machine hours 9,000 units produced Calculate the VOH spending variance.

Select one:

a. 55

b. 945

c. 9,000

d. 9,945

e. none of the above