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 $ 26,000 Actual fixed overhead cost incurred $ 11,000 Budgeted fixed overhead cost $ 12,000 Actual machine hours 7,000 Standard machine hours allowed for the units manufactured 4,200 Denominator volumemachine hours 7,500 Standard variable overhead rate per machine hour $ 3 The variable overhead spending variance is: