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Phillips Fencing considers 6,000 direct labor hours or 200 fences to be its normal monthly capacity. Its standard variable overhead rate is $7 per direct
Phillips Fencing considers 6,000 direct labor hours or 200 fences to be its normal monthly capacity. Its standard variable overhead rate is $7 per direct labor hour. During the current month, $44,500 of variable overhead costs were incurred in working 6,200 direct labor hours to complete 215 fences.
What is the variable overhead spending variance?
Select one:
a. $1,100 F
b. $2,500 F
c. $1,100 U
d. $2,500 U
e. None of the above
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