Talon Company

In October, Talon Company made 10,900 units of its product. Talon uses a standard cost system and applies overhead cost based on direct labor hours.

Standard:	-
DLH per unit	2.50
Variable overhead per DLH	$1.75
Fixed overhead per DLH	$3.10
Budgeted variable overhead	$121,875
Budgeted fixed overhead	$175,380
-	-
Actual:	-
Direct labor hours	10,000
Variable overhead	$122,250
Fixed overhead	$182,410

Using the four-variance approach, what is the fixed overhead spending variance?

1. $3,125 F

2. $375 U

3. $750 F

4. $7,030 U