Metlock Company uses a standard cost system. Indirect costs were budgeted at $214,000 plus $14 per direct labour hour. The overhead rate is based on 10,700 hours. Actual results were:

Standard direct labour hours allowed		9,470
Actual direct labour hours		10,700
Fixed overhead		$189,400
Variable overhead		$185,200

(b)

Calculate the variable overhead spending variance.

Variable overhead spending variance

$enter a dollar amount

select an option Neither favourable nor unfavourableUnfavourableFavourable