Reference: 11-11
the Clark Company Makes a Single Product and Uses

Reference: 11-11
The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: $$\begin{array} { | l | l | l | } \hline \text { Labour rate variance: } & \$ 7,000 & \mathrm {~F} \\\hline \text { Labour efficiency variance: } & \$ 12,000 & \mathrm {~F} \\\hline \text { Variable overhead efficiency variance: } & \$ 4,000 & \mathrm {~F} \\\hline \text { Number of units produced: } & 10,000 & \\\hline \text { Standard labour rate per direct labour hour: } & \$ 12 & \\\hline \text { Standard variable overhead rate per direct labour hour: } & \$ 4 & \\\hline \text { Actual labour hours used: } & 14,000 & \\\hline \text { Actual variable manufacturing overhead costs: } & \$ 58,290 & \\\hline\end{array}$$
-The following standards for variable manufacturing overhead have been established for a company that makes only one product: $$\begin{array}{l}\begin{array} { | l | l | } \hline \text { Standard hours per unit of output } & 5.6 \text { hours } \\\hline \text { Standard variable overhead rate } & \$ 12.00 \text { per hour } \\\hline\end{array}\\\text { The following data pertains to operations for the last month: }\\\begin{array} { | l | l | } \hline \text { Actual hours } & 2,600 \text { hours } \\\hline \text { Actual total variable overhead cost } & \$ 31,330 \\\hline \text { Actual output } & 400 \text { units } \\\hline\end{array}\end{array}$$ What is the variable overhead spending variance for the month?

A) $4,338 U.
B) $130 U.
C) $112 F.
D) $4,450 U.