Tobin Inc. uses a standard costing system and assigns variable overhead using direct labour hours. The direct labour standard indicates that 1.5 direct labour hours should be used per unit produced. Normal annual production volume is 250,000 units. Thus, the company has budgeted a total of 375,000 direct labour hours for the year. Budgeted variable overhead for the year is $1,537,500. Actual results for the year are as follows: Units produced 245,000 Direct labour hours 372,000 Variable overhead $1,517,760 What is the variable overhead spending variance for the year? $8,060 unfavourable $7,440 unfavourable $8,060 favourable None of these is correct. $7,440 favourable