Questions 8 is based on the following: True Corp uses direct labor hours to allocate variable manufacturing overhead costs. The standards allow 2 direct labor hours to produce one unit of output. Standard variable overhead rate is $7 per direct labor hour. Other budgeted and actual numbers were as follows: Static Budget Actual 4,000 4,150 Production (units) $56,000 $55,350 Variable Overhead costs 8,000 8,200 Direct labor hours 2 Question 8 What is the variable overhead spending variance? $2,750 Favorable $700 Favorable $2,050 Favorable $2,050 Unfavorable