During the year, Factory A actually produced 10,000 units, used 20,000 direct labour hours and incurred variable overhead of $90,000. The budgeted variable overhead for the year was $88,000 and the standard variable overhead rate is $4.00 per direct labour hour. Which one of the following is the variable overhead spending variance?

Select one:

a.$4,000 unfavourable

b.$6,000 unfavourable

c.$2,000 unfavourable

d.$10,000 unfavourable

Clear my choice