When preparing flexible budget, MAYAR Corporation has the following information available for variable overhead costs. Direct labor hours are the cost driver for variable overhead costs.

Actual variable overhead costs $5,120

Standard variable overhead costs $3.00 per hour

Actual direct labor hours 2,000 hours

Standard direct labor hours per unit 3 hours

Units produced 1,000

What is the variable overhead spending variance?

Select one: a. $3,880 Favorable b. $3,880 Unfavorable c. $1,000 Unfavorable d. $880 Favorable