Megan, Incorporated uses the following standard costs per unit for one of its products: Direct labor (2.0 hours @ $5.00 per hour) = $10.00; overhead (2.0 hours @ $2.50 per hour) = $5.00. The flexible budget for overhead is $120,000 plus $1.00 per direct labor hour (DLH). Actual data for the past month show total overhead costs of $233,000, total fixed overhead of $117,000, 86,000 hours worked, and 40,000 units produced. The variable overhead spending variance for the past month for Megan, Incorporated was:

Multiple Choice

• $0.

• $16,000 unfavorable.

• $18,000 unfavorable.

• $30,000 unfavorable.

• None of these answers are correct.