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

Question 8 Not yet answered Marked out of 4.17 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: O a. $1,100 F b. $2,500 F O C. $1,100 U d. $2,500 U e. None of the above