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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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