Daffodil Company

Daffodil Company reported the following results from last year's operations:

Units produced $-100,000$

Direct labour $-160,000$ hours @ $$12/$hour

Actual variable overhead $-$ $$1,300,000$

The company employs a standard costing system. During the year, a variable overhead rate of $$8$ per hour was used. The labour standard requires $1\mathrm{.}5$ hours per unit produced.

Refer to Daffodil Company. What is the variable overhead spending variance?

$$20,000U$

$$20,000F$

$$100,000U$

$$100,000F$