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Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.
The following information is available for September when Commodore produced 5,000 units:
Standard:Direct labor hours per unit3
Variable overhead per direct labor hour$1.80
Fixed overhead per direct labor hour$3.25
Budgeted units5,400
Actual:Direct labor hours16,000
Variable overhead$31,325
Fixed overhead$49,750
What is the variable overhead spending variance?
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