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Servantez Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company's

Servantez Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company's standard cost for variable overhead is $9.50 per MH. During the month, the actual total variable overhead was $51,300 and the actual level of activity for the period was 5,700 MHs. What was the variable overhead spending variance for the month?

Select one:

a.

$2,850 favourable

b.

$300 unfavourable

c.

$2,850 unfavourable

d.

$300 favourable

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