Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance. Direct labor standard (2 hrs. @ $12.75/hr.) Actual direct labor hours Budgeted units Actual finished units produced Standard variable OH rate (2 hrs. @ $14.30/hr.) Standard fixed OH rate ($336,000/42,000 units) Actual cost of variable overhead costs incurred Actual cost of fixed overhead costs incurred $25.50 per finished unit 81,500 hrs. 42,000 units 40,000 units $28.60 per finished unit $8.00 per unit $1,140,000 $338,000 $25,450 favorable. $4,000 favorable. 0 $4,000 unfavorable. O $21,450 unfavorable. $21,450 favorable