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Actual direct labor for the month of June totaled 14,500 hours compared to an allowed standard of 15,000 hours. The total actual overhead was $33,000.

Actual direct labor for the month of June totaled 14,500 hours compared to an allowed standard of 15,000 hours. The total actual overhead was $33,000. The standard overhead application rate is $2.25 per direct labor hour. What was the overhead spending variance for the month?

1. $375 favorable

2. $375 unfavorable

3. $900 favorable

4. $900 unfavorable

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