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Serene Sound produces a high quality audio tape used in the recording industry. Serene allocates variable overhead to production at a rate of $12 per

Serene Sound produces a high quality audio tape used in the recording industry. Serene allocates variable overhead to production at a rate of $12 per batch manufactured. The companys monthly fixed overhead costs average $72,000. An average of 500 batches per month is considered normal. During June, Serene produced 450 batches of audio tape and incurred actual overhead costs of $79,500.

Compute the following amount:

  • Serene's overhead spending variance was $________ (favorable/unfavorable)

Group of answer choices

$2,000 Unfavorable

$2,1,00 Favorable

$2,100 Unfavorable

$1,900Ffavorable

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