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Question 70

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Use the following information to answer Questions below.
Kraig Fencing considers 4,000 direct labor hours or 100 fences to be its normal monthly capacity. Its standard variable overhead rate is $9 per direct labor hour. During the current month, $33,500 of variable overhead costs were incurred in working 3,800 direct labor hours to complete 92 fences.
-What is the variable overhead spending variance?


A) $700 U
B) $700 F
C) $2,500 U
D) $2,500 F
E) None of the above

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