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Indian Company Has the Following Information Available for Variable Overhead

Question 65

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Indian Company has the following information available for variable overhead costs.Direct labor hours are the cost driver for variable overhead costs.
 Actual variable overhead costs $5,120 Standard variable overhead costs $3.00 per hour  Actual direct labor hours 2,000 hours  Standard direct labor hours per unit 3 hours  Units produced 1,000\begin{array}{ll}\text { Actual variable overhead costs } & \$ 5,120 \\\text { Standard variable overhead costs } & \$ 3.00 \text { per hour } \\\text { Actual direct labor hours } & 2,000 \text { hours } \\\text { Standard direct labor hours per unit } & 3 \text { hours } \\\text { Units produced } & 1,000\end{array}
What is the variable overhead spending variance?


A) $880 Favorable
B) $1,000 Unfavorable
C) $3,880 Favorable
D) $3,880 Unfavorable

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