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Underfoot Products Uses Standard Costing Compute the Variable Overhead Spending Variance

question 117

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Underfoot Products uses standard costing.The following information about overhead was generated during May:  Standard variable overhead rate $2 per machine hour  Standard fixed overhead rate $1 per machine hour  Actual variable overhead costs $390,000 Actual Eixed overhead costs $175,000 Budgeted fixed overhead costs $190,000 Standard machine hours per unit produced 10 Good units produced 18,000 Actual machine hours 195000\begin{array} { l l } \text { Standard variable overhead rate } & \$ 2 \text { per machine hour } \\\text { Standard fixed overhead rate } & \$ 1 \text { per machine hour } \\\text { Actual variable overhead costs } & \$ 390,000 \\\text { Actual Eixed overhead costs } & \$ 175,000 \\\text { Budgeted fixed overhead costs } & \$ 190,000 \\\text { Standard machine hours per unit produced } & 10 \\\text { Good units produced } & 18,000 \\\text { Actual machine hours } & 195000\end{array}
Compute the variable overhead spending variance.

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