*spending variance ..

The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred Actual fixed overhead cost incurred Budgeted fixed overhead cost Actual machine hours Standard machine hours allowed for the units manufactured Denominator volume-machine hours Standard variable overhead rate per machine hour $ 31,000 $ 12,000 $ 14,000 7,000 5,200 4,500 $ 3 The variable overhead spending variance is: Multiple Choice $1,600 unfavorable. $2,000 favorable. $2.400 unfavorable. $2.500 favorable. $3,100 favorable