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Indian Company has the following information available for variable overhead costs. Direct labor hours are the cost driver for variable overhead costs. Actual variable overhead

Indian Company has the following information available for variable overhead costs. Direct labor hours are the cost driver for variable overhead costs.
Actual variable overhead costs
Standard variable overhead costs
Actual direct labor hours
Standard direct labor hours per unit
Units produced
$5,120
$3.00 per hour
2,000 hours
3 hours
1,000
What is the variable overhead spending variance?
$1,000 Unfavorable
$3,880 Favorable
$3,880 Unfavorable

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