Answer the following questions using the information below:
Roberts Corporation manufactured 100,000 buckets during February. The overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February:

-What is the variable overhead spending variance?
A)$1,000 favorable
B)$1,450 unfavorable
C)$2,450 unfavorable
D)None of these answers is correct.

Question

Answer the following questions using the information below:
Roberts Corporation manufactured 100,000 buckets during February. The overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February:
 
-What is the variable overhead spending variance?
A)$1,000 favorable 
B)$1,450 unfavorable 
C)$2,450 unfavorable 
D)None of these answers is correct.

Quizplus · Accepted Answer

The variable overhead spending variance is calculated as the difference between the actual variable overhead costs incurred and the standard variable overhead costs allowed for the actual hours worked. The given options suggest that $2,450 unfavorable is the correct variance, indicating that the actual costs exceeded the standard costs by this amount.

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