Sanford Ltd. produces a product with the following standard cost card

Variable overhead (9 hours)

$18.91

The fixed overhead rate is based on a standard monthly volume of 15634 units.

The actual results for the month of July 20x5 are as follows:

	Direct labour (92621 hours)	$1023000
	Variable overhead	$333194
	Fixed overhead	$580000
	Units produced and sold	15383 units

What is Sanfords variable overhead spending variance for July 20x5? Note: a negative number represents an unfavourable variance and a positive number represents a favourable variance.

Select one:

a. $-138587

b. $138587

c. $-254697

d. $0