Talon Company

In June, Talon Company made 4,500 units of its product. Talon uses a standard cost system and applies overhead cost based on direct labor hours.

Standard:	-
DLH per unit	2
Variable overhead per DLH	$2.15
Fixed overhead per DLH	$3.10
Budgeted variable overhead	$21,875
Budgeted fixed overhead	$38,750
-	-
Actual:	-
Direct labor hours	10,000
Variable overhead	$19,750
Fixed overhead	$38,000

Refer to Talon Company. Using the four-variance approach, what is the variable overhead spending variance?

Group of answer choices

$8,750 U

$4,438 F

$6,563 U

$1,750 F