Answer:
Variable Overhead Spending variance = $50 Favorable
Explanation:
Variable Overhead Spending Variance = (Standard Rate - Actual Rate)[tex]\times[/tex] Actual Hours
We are provided the following details as follows:
Standard variable overhead rate = $10
Actual variable overhead rate = $8
Actual hours of overhead = 25
Therefore, putting values in above we have,
Variable Overhead Spending variance = ($10 - $8) [tex]\times[/tex] 25 = $50
The variance is favorable as standard rate = $10 and actual rate = $8, actual is less than standard.
Variable Overhead Spending variance = $50 Favorable
