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The Dillon Company makes and sells a single product and uses a flexible budget for overhead to plan and control overhead costs. Overhead costs are

The Dillon Company makes and sells a single product and uses a flexible budget for overhead to plan and control overhead costs. Overhead costs are applied on the basis of direct labour-hours. The standard cost card shows that 5 direct labour-hours are required per unit. The Dillon Company had the following budgeted and actual data for March: Actual Budgeted Units produced 33,900 30,800 Direct labour-hours 161,800 154,000 Variable overhead costs $140,500 $123,200 Fixed overhead costs $80,000 $77,000 The variable overhead spending variance for March is: a. $4,900 U. b. $11,060 U. c. $14,700 U. d. $17,300 U

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