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Melrose Manufacturing produces gourmet blackberry preserves. Melrose based its current year budget on a production level of 540,000 jars of preserves using hour direct labor
Melrose Manufacturing produces gourmet blackberry preserves. Melrose based its current year budget on a production level of 540,000 jars of preserves using hour direct labor time for each jar (which includes hand-sorting and trimming the berries). Total budgeted variable overhead for the year was $1,242,000. During the year, Melrose used 280,000 direct labor hours to produce 550,000 jars of blackberry preserves. Actual variable overhead for the year was $1,246,000. What is Melroses variable overhead spending variance?
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