Russo Corporation manufactured 21,000 air conditioners during November. The overhead cost-allocation base is $34.25 per machine-hour. The following variable overhead data pertain to November: Actual Budgeted Production 21,000 units 24,000 units Machine-hours 13,300 hours 14,400 hours Variable overhead cost per machine-hour: $34.00 $34.25 What is the variable overhead spending variance? Production Machine-hours Variable overhead cost per machine-hour Actual 21,000 units 13,300 hours $34.00 1. Determine the variable overhead spending variance 2. Indicate if the variance unfavourable or favourable 3. Comment in the results is requirement Budgets 24,000 units 14,400 hours $34.25

Ex6- Russo Corporation manufactured 21,000 air conditioners during November. The overhead cost-allocation base is $34.25 per machine-hour. The following variable overhead data pertain to November: Actual Budgeted Production 21,000 units 24,000 units Machine-hours 13,300 hours 14,400 hours Variable overhead cost per machine-hour: $34.00$34.25 What is the variable overhead spending variance? 1. Determine the variable overhead spending variance 2. Indicate if the variance unfavourable or favourable 3. Comment in the results is requirement