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Calculate the variable overhead spending variance. Assume the following: Actual factory overhead = $15,000 Fixed overhead expenses, actual = $7,200 Fixed overhead expenses, budgeted =

Calculate the variable overhead spending variance.

Assume the following:

  • Actual factory overhead = $15,000
  • Fixed overhead expenses, actual = $7,200
  • Fixed overhead expenses, budgeted = $7,000
  • Actual hours = 3,500
  • Standard activity allowed = 3,650
  • Standard hours = 3,800
  • Variable overhead rate per direct labor hour = $2.50

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