Question

Lazy Guy Corporation manufactured chairs during June. The following variable overhead data relates to​ June: Budgeted variable overhead cost per unit Actual variable manufacturing overhead cost Flexiblebudget amount for variable manufacturing overhead Variable manufacturing overhead efficiency variance unfavorable What is the variable overhead spending​ variance?

Answer 1

Answer: C. $2,200 Unfavorable

Explanation:

Variable Overhead Spending Variance = Variable Manufacturing Overhead variance - Variable manufacturing overhead efficiency variance

Variable Manufacturing Overhead variance = Actual variable manufacturing overhead cost - Flexible-Budget amount for variable manufacturing overhead

= 49,500 - 46,500

= $3,000 Unfavorable

Variable Overhead Spending Variance = 3,000 - 800

= $2,200 Unfavorable